If People Decide To Hold More Currency Relative To Deposits The Money Supply Ans

28. If people decide to hold more currency relative to deposits, the money supply

Answer: B

A. falls. The larger the reserve ratio is, the more the money supply falls. Bfalls. The larger the reserve ratio is, the less the money supply falls.C rises. The larger the reserve ratio is, the more the money supply rises.D rises. The larger the reserve ratio is, the less the money supply rises. E None of the above

Please provide an explanation

 
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