Imagine you’re the head of the Federal Reserve. You have decided to decrease the money supply...
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Economics
Imagine you’re the head of the Federal Reserve. You have decidedto decrease the money supply in the United States economy. Fullyexplain one way you can make this happen.
Imagine you’re the head of the Federal Reserve. You have decidedto decrease the money supply in the United States economy. Fullyexplain one way you can make this happen.
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Altering the reserve ratio is rarely used but potentially very effective The reserve ratio is the amount of assets which a bank must keep against deposits A fall in the ratio would cause the bank to lend further thereby rising the money supply The opposite result would be an rise in
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