Does inflation, which is an increase in the price level, affect the three functions of money? If so, how? Some economists have proposed that the Fed move to a 100 percent required reserve ratio.This...

Does inflation, which is an increase in the price level,

affect the three functions of money? If so, how?

Some economists have proposed that the Fed move to a

100 percent required reserve ratio.This would make the

simple deposit multiplier 1 (1/r 1/1.00 1). Do you

think banks would argue for or against the move?

Explain your answer.