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Question
As a result of the Fed's actions during the 2008 financial crisis and banks' lending policies, the money multiplier ________ as a direct result of the ________.A) fell from about 9 to about 4; surge in banks' desired reserve ratios as they took on less risk
B) rose from about 4 to about 9; surge in banks' desired reserve ratios as they took on less risk
C) fell from about 9 to about 4; low risk experienced by banks because of the FDIC increasing their default coverage amounts
D) rose drastically; consistent decrease in banks' desired reserve ratios as they took on less risk
E) decreased drastically; consistent decrease in banks' desired reserve ratios as they took on less risk
Answer
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Related questions
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