Multiple choices 18/50
(Choose 1 answer)
(17928) During a bank run, depositors decide to hold more currency relative to deposits to hold more excess reserves relative to deposits
A. The decision to hold relatively more currency would make the money supply increase. The decision to hold relatively more excess reserves would make the money supply decrease.
B. The decision to hold relatively more currency would make the money supply decrease. The decision to hold relatively more excess reserves would make the money supply increase.
C. Both the decision to hold relatively more currency and the decision to hold relatively more excess reserves would make the money supply decrease.
D. Both the decision to hold relatively more currency and the decision to hold relatively more excess reserves would make the money supply increase.
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