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7. A decrease in the nonborrowed monetary base, everything else hela constant( the multiplier the same) will cause the money supply D. Demand deposits to rise 8. Everything else held constant, a decrease in excess reserves will he money supply to rise c No change in will cause A. The money supply to rise B. The money supply to remain constant C. The money supply to fall D. Checkable deposits to rise 9. If the required reserve ratio is 15 percent, currency in circulation is $400 Billion, checkable deposits are $800 billion, and excess reserves are $0.8 billion, then the MI multiplier is A. 2.5 B. 1.67 C. 2.3 D.,651 10. If the required reserve ratio is 10 percent, currency in circulation is$400 billion, checkable deposits are $1000 billion, and excess reserves are S1 billion, then the monetary base is A. $400 billion B. $401 billion C. $500 billion D. $501 billion Chapter 15- Tools of Monetary Policy 11. Everything else held constant, in the market for reserves, when the A. Lowers the federal funds rate B. Raises the federal funds rate Fed funds rate is 3%, lowering the discount rate from 7% to 6% C. Has no effect on the federal funds rate D. has an indeterminate effect

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