If banks are currently holding zero excess reserves and the Fed raises the required reserve ratio, which of the following will happen?
A) Banks will have a reserve deficiency.
B) Banks will have positive excess reserves.
C) Banks will begin to extend more loans.
D) Banks will begin to extend more credit.
E) b and d
A
Economics
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_______________________ are economists who generally emphasize the importance of aggregate supply in determining the size of the macroeconomy over the _____________.
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