Answer:
In situation where, large amounts of federal reserves enter the banking system (resulting in large amount of liquidity) but the federal reserves are withheld by the banking system it would form excess reserves. This withholding of reserves would most likely lead to the money multiplier(M1) to fall below one.
As there is a direct relationship between the banking system reserves and the money multiplier.
Answer:
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Answer:
World War II put a heavy burden on US supplies of basic materials like food, shoes, ... babies, which had to be turned in along with money to purchase goods made with ... Tires were the first product to be rationed,
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