76 337
Assignments Done
Successfully Done
In May 2019

Answer to Question #68431 in Economics of Enterprise for Yvonne

Question #68431
What might be a result if the Federal Reserve increased reserve requirements too rapidly?
Expert's answer
Reserve ratio affects both resources on the federal funds market and money available for loan providing. The increase of reserve requirements will cause shortage of money supply. Such restrictive monetary policy will raise interest rate and might decrease total output in short term.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!


No comments. Be first!

Leave a comment

Ask Your question

Privacy policy Terms and Conditions