📝 Multiple Choice Question
Economics
If the value/percentage of the cash reserve ratio falls, then the value of money multiplier .
A
falls
B
None of the above
C
remains stable
D
rises
Explanation
The money multiplier is inversely proportional to the Cash Reserve Ratio (CRR); a decrease in the CRR frees up more capital for banks to lend, thereby causing the money multiplier to rise.
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