Recall Application 2, "The Growth in Excess Reserves" to Answer

question 142

Multiple Choice

Recall Application 2, "The Growth in Excess Reserves" to answer the following questions:
-Based on what you learned from the application, the Fed can induce banks to lend more and increase the money supply by:

• A) lowering the interest rate for excess reserves.
• B) requiring banks to hold on to more excess reserves.
• C) raising the interest rate for excess reserves.
• D) raising the reserve requirement.

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