If the Fed increases the required reserves, financial institutions would be expected to lend out:

Name: If the Fed increases the required reserves, financial institutions would be expected to lend out:
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When the Federal Reserve increases the required reserves, banks have less money available to lend out, which decreases the money supply. This is because banks must hold a larger portion of their deposits in reserve, reducing the amount they can use for loans and other investments.

If the Fed Increases the Required Reserves, Financial Institutions Would