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What happen if commercial banks suddenly decide to increase

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Reference no: EM132969702

Problem 1: All else equal, if commercial banks suddenly decide to increase their target reserve ratio, what will happen?

a. monetary policy will become more effective

b. we cannot predict what will happen to the deposit multiplier

c. deposit multiplier will stay the same

d. deposit multiplier will increase

e. deposit multiplier will decline

 

Reference no: EM132969702

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