money
If the Fed injects reserves into the banking system and they are held as excess reserves, then the money supply
A) increases by only the initial increase in reserves.
B) increases by only one-half the initial increase in reserves.
C) increases by a multiple of the initial increase in reserves.
D) does not change.
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If the Fed injects reserves into the banking system and they are held as excess reserves...
If the Fed injects reserves into the banking system and they are held as excess reserves (i.e. not used for loans at all), then the monetary base ________ and the money supply ________. A) remains unchanged; remains unchanged B) remains unchanged; increases C) increases; increases D) increases; remains unchanged
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Assume that banks do not hold excess reserves and that households do not hold currency, so the only form of money is demand deposits.
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Assume that banks do not hold excess reserves and that households do not hold currency
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