If the money multiplier decreased from 20 to 12.5, then
a. the fed increased the reserv...
If the money multiplier decreased from 20 to 12.5, then
a. the fed increased the reserve ratio from 5 percent to 8 percent.
b. the fed increased the fed funds rate from 5 percent to 8 percent.
c. the fed decreased the reserve ratio from 8 percent to 5 percent.
d. the fed decreased the fed funds rate from 8 percent to 5 percent.
Answers: 1
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