If the Federal Reserve increases the reserve requirement, what effect will this have on the nation's money supply? a. Increase the money supply. c. Have no effect on the money supply. b. Decrease the money supply. d. It will double the nation's money supply.

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Jaiden Miller

30 April, 06:43

If the Federal Reserve increases the reserve requirement, what effect will this have on the nation's money supply? a. Increase the money supply. c. Have no effect on the money supply. b. Decrease the money supply. d. It will double the nation's money supply.

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Lailah Powers · Answer 1

If the Federal Reserve increases the reserve requirement, the nation's money supply will decrease. This is because there would be less money being spent in the general economy.

Natalia Bridges · Answer 2

Natalia Bridges 30 April, 07:46

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B. Decrease the money supply