According to the Interest-Rate-Based Monetary Policy Transmission Mechanism

question 131

Multiple Choice

According to the interest-rate-based monetary policy transmission mechanism

• A) an increase in the required reserve ratio will lower interest rates.
• B) a decrease in the required reserve ratio will lower interest rates.
• C) a decrease in the required reserve ratio will not affect interest rates.
• D) an increase in the required reserve ratio will not affect interest rates.

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