Economics Question
Just had my econs paper today. I felt very startled when I came across this question as there was no answer with the combination I had figured out
Qn: When the central bank lowers the requried reserve ratio, the money supply _____ and bank's reserve _____.
A) remains constant; decreases
B) decreases; decreases
C) increases; remain constant
D) increases; increases
The 1st answer I figured it out to be increases, but 2nd one leh? Any econs student to help answer?
Qn: When the central bank lowers the requried reserve ratio, the money supply _____ and bank's reserve _____.
A) remains constant; decreases
B) decreases; decreases
C) increases; remain constant
D) increases; increases
The 1st answer I figured it out to be increases, but 2nd one leh? Any econs student to help answer?