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What Is an Outcome of the Federal Reserve Board Decreasing

Question 48

Multiple Choice

What is an outcome of the Federal Reserve Board decreasing the reserve requirements?


A) Interest rates increase; the money supply decreases; economic activity increases.
B) Banks make fewer loans; the money supply declines; economic activity slows down.
C) Banks make more loans; the money supply increases; economic activity increases.
D) Interest rates increase; the money supply decreases; economic activity slows down.
E) The money supply decreases; economic activity slows down.

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