The money supply can be contracted by holding the amount of reserves constant but raising the reserve requirement.

Name: The money supply can be contracted by holding the amount of reserves constant but raising the reserve requirement.
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By raising the reserve requirement, banks will be required to hold a higher percentage of their deposits in reserves and will have less money available to lend out. This will lead to a contraction in the money supply.

The Money Supply Can Be Contracted by Holding the Amount