- Assume an original balance sheet: If the Fed changes the required reserve ratio in Table 14.2 to 15 percent,the lending capacity of the system will eventually

Name: - Assume an original balance sheet: If the Fed changes the required reserve ratio in Table 14.2 to 15 percent,the lending capacity of the system will eventually
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Increasing the required reserve ratio to 15% reduces the amount of money banks can lend out, thus decreasing the lending capacity of the system.

- Assume an Original Balance Sheet: If the Fed Changes