When the Bank of Canada increases the reserve requirement,banks lend _____ of their deposits,which leads to a(n)_____ in the money supply.

Name: When the Bank of Canada increases the reserve requirement,banks lend _____ of their deposits,which leads to a(n)_____ in the money supply.
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When the Bank of Canada increases the reserve requirement, banks are required to hold more funds in reserve and lend out less of their deposits. This reduction in lending leads to a decrease in the money supply.

When the Bank of Canada Increases the Reserve Requirement,banks Lend