Suppose the Fed increases the required reserves from 15% to 20% of deposits. Assuming that banks are loaned-up, in which direction will the money supply change? What will happen to the value of the money multiplier?

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The Answer of Suppose the Fed increases the required reserves from 15% to 20% of deposits. Assuming that banks are loaned-up, in which direction will the money supply change? What will happen to the value of the money multiplier?

Suppose the Fed Increases the Required Reserves from 15% to 20