When the Fed lowers the required reserve ratio, the money supply _______ and banks' reserves _______.

Name: When the Fed lowers the required reserve ratio, the money supply _______ and banks' reserves _______.
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When the Fed lowers the required reserve ratio, banks are required to hold less money in reserve, allowing them to lend out more money. This leads to an increase in the money supply. At the same time, banks' reserves also increase since they are required to hold less money in reserve.

When the Fed Lowers the Required Reserve Ratio, the Money