18. If the central bank increases the amount of reserves banks are required to hold to 2000, then: A. the money multiplier will increase and the supply of money in the economy will decrease. B. both the money multiplier and the supply of money in the economny will increase. C. the money multiplier will decrease and the supply of money in the economy will increase. D. both the money multiplier and supply of money in the economy will decrease. 19. In an economy with , money loses some buying power each year, but it remains money. A. inflation B. currency C. deflation D. a market orientation 20. The market in which loans are bought and sold is called the: A. loan market B. money market. C. secondary loan market. D. primary loan market.
