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If commercial banks are maintaining a 4 percent reserve/deposit ratio and the fed raises the required reserve ratio to 6 percent, then banks will ______ their loans based on current deposits, and the money
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If commercial banks are maintaining a 4 percent reserve/deposit ratio and the fed raises the required reserve ratio to 6 percent, then banks will ______ their loans based on current deposits, and the money supply will _____.

User Shivas
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7 votes
the correct answer is decrease & decreases
User Anushka
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