Central banks do not frequently change the reserve requirement because the effects on the money supply may be too large. Explain why this is true.

Name: Central banks do not frequently change the reserve requirement because the effects on the money supply may be too large. Explain why this is true.
Brand: Quizplus
Rating: 4.8 (49 reviews)

Question

Quizplus · Accepted Answer

The Answer of Central banks do not frequently change the reserve requirement because the effects on the money supply may be too large. Explain why this is true.

Central Banks Do Not Frequently Change the Reserve Requirement Because