1. If the Fed were to impose a slight increase in the required reserves ratio, there would be _____.
an increase in the money supply
no change in the money supply
an increase, then a decrease, in the money supply
a decrease in the money supply
If the Fed were to impose a slight increase in the required reserves ratio, there would be "a decrease in the money supply," since banks would have to keep more money on reserve.
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cmblair32
If the Fed were to impose a slight increase in the required reserves ratio, there would be "a decrease in the money supply," since banks would have to keep more money on reserve.
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