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What describes how Lowering the required ratio increases the money supply?
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∙ 9y ago
Makes the deposit multiplier bigger. - Dustin SELU
Anya King
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What accurately describes how Lowering the required ratio increases the money supply?
Makes the deposit multiplier bigger. - Dustin SELU
What accurately describes how lowering the required reserve ratio increases the money supply?
When the required reserve ratio is lowered, banks can loan out more money.
What describes how lowering the required reserve ratio reduces the money supply?
When the required reserve ratio is lowered, banks can loan out more money.
What describes the most likely effect of the Fed lowering discount rate on overnight loans?
An increase in the money supply
What describes the most likely effect of the Fed lowering the discount rates on overnight loans?
An increase in the money supply
Which of the following can the Fed accomplish by raising or lowering the required reserve ratio?
Increase or decrease the money supply
Which of the following describes the most likely effect of the Fed lowering the discpunt rate on overnight loans?
An increase in the money supply apex:D
How does a expansionary monetary policy affect the interest rate overall price level and GDP?
expansionary monetary policy increases money supply by lowering interest rates
Which of these shows (displays) the law of supply?
The price of houses increases, and the supply increases
What According to the law of supply and demand when supply increases what else happens?
According to the law of supply and demand when supply increases, prices will decrease.
What economic explanation occurs if demand increases?
supply will decrease and price will rise greatly
Which of the following best describes the economic effect that results from the government having budget surplus?
Demand increases, pushing producers to increase supply --> overal demand decreases, reducing the incentivefor producers to icrease production
