A change in the reserve requirement is used infrequently by the Fed because it

A) does not affect bank reserves. B) does not influence the money supply.
C) is disruptive to the banking system. D) does not affect the money multiplier.

C

Economics

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What will be an ideal response?

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One possible benefit from inflation is:

A. inflation causes restaurants to update their menus more often. B. inflation reduces distortions to relative prices. C. if nominal wages are fixed, inflation decreases real wages. D. if nominal wages are fixed, inflation increases real wages.

Economics