Question

Homework help on multiple choice confusing questions:
1. When the legal reserve requirement is lowered:
A. the money multiplier increases, and the amount of excess reserves temporarily increases in the banking system.
B. the money multiplier decreases, and the amount of excess reserves temporarily increases in the banking system.
C.the money multiplier decreases, and the D.amount of excess reserves temporarily decreases in the banking system.
E. the money multiplier increases, and the amount of excess reserves temporarily decreases in the banking system.

Answer 1

@bohotness

Answer 2

http://r.search.yahoo.com/_ylt=A0LEVwpupUJVb60Ao95XNyoA;_ylu=X3oDMTByNXM5bzY5BGNvbG8DYmYxBHBvcwMzBHZ0aWQDBHNlYwNzcg--/RV=2/RE=1430459887/RO=10/RU=https%3a%2f%2fquizlet.com%2f30372690%2fchapter-131415-econ-online-flash-cards%2f/RK=0/RS=E4UxVj9rSf7.1w4eoEbAOVqPBE8-

Answer 3

I'm looking at the link. :)