To decrease the money supply using the reserve requirements, what would the Fed typically do?
A. raise the reserve requirement for banks
B. reduce the reserve requirement for banks
C. make each bank voluntarily set its own reserve levels
D. let each bank get less currency from the Treasury
Answer: A
Economics
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If the quantity of goods and services produced in an economy decreases,
A) it may be possible for nominal GDP to increase. B) real GDP will certainly increase. C) nominal GDP will certainly decrease. D) it may be possible for real GDP to increase.
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Critically evaluate the following statement. "If a country can produce a good using fewer inputs than other country then that means that country enjoys a comparative advantage."
What will be an ideal response?
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