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Answer the indicated question on the basis of the information in Table 14.1.Each question is based on the original balance sheet.
-In Table 14.1,if the Fed changes the required reserve ratio to 5 percent,the lending capacity of the banking system will eventually:
Market Distortion
An economic phenomenon where external factors lead to a deviation from the expected or efficient allocation of resources, often causing prices to be higher or lower than they would be in a free market.
Taxed
Subjected to a compulsory financial charge or levy by governmental organizations for the funding of state expenditures.
Worse Off
A situation or condition in which an individual or group is in a less favorable position than before.
Demand Curve
A graph showing the relationship between the price of a good and the amount of it that consumers are willing to purchase at various prices.
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