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Ierofanga [76]
3 years ago
11

Why might the FED want to decrease the money supply?

History
1 answer:
Helga [31]3 years ago
7 0

When the Federal Reserve decreases the reserve ratio, it lowers the amount of cash that banks are required to hold in reserves, allowing them to make more loans to consumers and businesses. This increases the nation's money supply and expands the economy.

Hope this helps, please mark brainliest.

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