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Question
Which of the following is an outcome of a decrease in the reserve requirement ratio?
A. DIs must hold more reserves against the transaction accounts on their balance sheets.
B. DIs are able to lend a smaller percentage of their deposits.
C. Decreased credit availability in the economy.
D. A multiple contraction in deposits and a decrease in the money supply.
E. A multiplier effect on the supply of DI deposits and thus, the money supply.
Answer
This answer is hidden. It contains 1 characters.
Related questions
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