If the Desired Reserve Ratio Decreases,then

question 144

Multiple Choice

If the desired reserve ratio decreases,then

• A)banks' desired reserves increase and their excess reserves decrease.
• B)bank customers become more willing to make deposits in banks.
• C)banks are able to make more loans.
• D)banks are forced to buy fewer government securities.
• E)banks' desired reserves decrease and their excess reserves do not change.

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