-Refer to Table 15.1. If the Fed increased the reserve requirement from 25 percent to 40 percent, the money supply in the whole banking system could
A) decrease by $255.
B) increase by $2,550.
C) decrease by $600.
D) increase by $550.
E) decrease by $1,350.

Question

-Refer to Table 15.1. If the Fed increased the reserve requirement from 25 percent to 40 percent, the money supply in the whole banking system could
A) decrease by $255. 
B) increase by $2,550. 
C) decrease by $600. 
D) increase by $550. 
E) decrease by $1,350.

Quizplus · Accepted Answer

The Answer of 
-Refer to Table 15.1. If the Fed increased the reserve requirement from 25 percent to 40 percent, the money supply in the whole banking system could
A) decrease by $255. 
B) increase by $2,550. 
C) decrease by $600. 
D) increase by $550. 
E) decrease by $1,350.