mtboreman9066 mtboreman9066
  • 24-08-2022
  • Business
contestada

The federal reserve is reluctant to change the required reserve requirments because?

Respuesta :

iheonuchimere
iheonuchimere iheonuchimere
  • 25-08-2022

Answer:

It could change money supply

Explanation:

The federal reserve do not always change the reserve requirement because this would change the money supply in the economy which can either lead to an inflation or a deflation.

For instance, when there is a reduction in reserve requirement, it increases money supply, which can result to the increase in  inflation.

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