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.
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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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