autumnellen9906 autumnellen9906
  • 20-07-2022
  • SAT
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How will the Fed's policy action change the money supply

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aimeenunezd aimeenunezd
  • 20-07-2022

Answer:  The Fed can influence the money supply by modifying reserve requirements, which generally refers to the amount of funds banks must hold against deposits in bank accounts. By lowering the reserve requirements, banks are able to loan more money, which increases the overall supply of money in the economy.

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