If the Fed Lowers the Reserve Requirements for Banks,this Would

question 258

Multiple Choice

If the Fed lowers the reserve requirements for banks,this would

• A)cause a decrease in the money supply.
• B)cause an increase in the money supply.
• C)raise the size of the deposit expansion multiplier.
• D)improve the safety of banks but have no effect on the deposit expansion multiplier or the money supply.

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