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If there are no excess reserves in the banking system and the Fed lowers the required reserve ratio,it follows that banks will now have __________,which they can use to extend loans and create new __________.
Firms
Firms refer to business entities or organizations that produce goods or provide services with the aim of making a profit.
Industry
A sector of the economy that is made up of manufacturing, production, or provision of services within a specific domain of activity or expertise.
Marginal Revenue
The supplementary income received from the sale of an additional unit of a product or service.
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