A bank has excess reserves to lend but is unable to find anyone to borrow the money. This wills __________ the size of the money multiplier.
a. reduce
c. increase
b. have no effect on
d. double

Respuesta :

The correct answer for this question is this one: "a. reduce." A bank has excess reserves to lend but is unable to find anyone to borrow the money. This wills reduce the size of the money multiplier. This move will entice more people to lend money because the money multiplier is already reduced.
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