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The money supply will grow faster through deposit creation when the required reserve ratio is:.
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22 votes
22 votes
The money supply will grow faster through deposit creation when the required reserve ratio is:.

User Pezze
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1 Answer

7 votes
7 votes

Answer:

c. low and banks are unable to loan out all of their excess reserves. d

Explanation:

Lower required reserve ratio means banks have more money to lend. When banks are able to lend all its excess money, then money supply increases for citizens.

User Aubrey Love
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