The Central Bank of Colombia required banks to decrease their cash reserve ratio. What will be its effect? a. Decrease in the aggregate supply b. Increase in money supply available for loans c. Increase in the aggregate supply d. Decrease in money supply available for loans
The Central Bank of Colombia required banks to decrease their cash reserve ratio. What will be its effect? a. Decrease in the aggregate supply b. Increase in money supply available for loans c. Increase in the aggregate supply d. Decrease in money supply available for loans
Chapter26: Monetary Policy
Section: Chapter Questions
Problem 16SQ
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Question
The Central Bank of Colombia required banks to decrease their cash reserve ratio. What will be its effect?
a.
Decrease in the
b.
Increase in money supply available for loans
c.
Increase in the aggregate supply
d.
Decrease in money supply available for loans
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