Question: Which accurately describes how lowering the required reserve ratio increases the money supply? Responses When the required reserve ratio is lowered, banks can loan out
Which accurately describes how lowering the required reserve ratio increases the money supply? Responses When the required reserve ratio is lowered, banks can loan out more money. When the required reserve ratio is lowered, banks can loan out more money. When the required reserve ratio is lowered, banks charge lower interest rates that make loans more affordable. When the required reserve ratio is lowered, banks charge lower interest rates that make loans more affordable. When the required reserve ratio is lowered, banks make less profit on money loaned out. When the required reserve ratio is lowered, banks make less profit on money loaned out. When the required reserve ratio is lowered, the inflation rate goes up and people spend less money
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