According to the Quantity Theory of Money, the Federal Reserve reducing reserve ratio will lead to _______ money supply which will only lead to _______   higher, inflation lower, inflation higher, booms lower, booms.

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According to the Quantity Theory of Money, the Federal Reserve reducing reserve ratio will lead to _______ money supply which will only lead to _______

 

higher, inflation

lower, inflation

higher, booms

lower, booms.

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