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will discourage aggregate demand.
It protects public deposits.
Increasing the reserve requirement for banks will make less money available to borrowers and thus slow the economy's growth.
Less money in the economy.
Reserve requirement
the percentage of a bank's total deposits that must be kept in its possession
Money Multiplier is inverse of Reserve Requirement. That is, m = 1/R
reserve ratio
Reserve requirement.
excess reserves
19%
excess reserves