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Answered

If the Fed were to impose a slight increase in the required reserves ratio, there would be _____.

an increase in the money supply

no change in the money supply

an increase, then a decrease, in the money supply

a decrease in the money supply

Verified Answer :

Vuk15

The correct answer is there would be a decrease in the money supply. That means that the amount money available to people would be reduced meaning that it would increase in value. This kind of a thing is called deflation and if it goes out of hand it can cause serious problems for the economy and the country.

Answer:

a decrease in the money supply

Explanation:

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