If the Fed reduced reserve requirements,

A) banks would have less money to lend businesses and consumers
B) economic growth would decline
C) inflation would decline
D) banks would have more money to lend out

Question

Laura Bowers · Accepted Answer

Final Answer : D, Explanation :  Reducing reserve requirements allows banks to hold less money in reserve and thus have more money available to lend out to businesses and consumers, potentially stimulating economic activity.

If the Fed reduced reserve requirements,

A) banks would have less money to lend businesses and consumers
B) economic growth would decline
C) inflation would decline
D) banks would have more money to lend out

Definitions

Learning Objectives

Learning Objectives

Related questions

If the Fed reduced reserve requirements,A) banks would have less money to lend businesses and consumersB) economic growth would declineC) inflation would declineD) banks would have more money to lend out

Definitions

Learning Objectives

Learning Objectives

Related questions

If the Fed reduced reserve requirements,

A) banks would have less money to lend businesses and consumers
B) economic growth would decline
C) inflation would decline
D) banks would have more money to lend out