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QUESTION 17 Suppose the Feds decide to increase reserve requirements, which of the following will occur? O A. The SUPPLY of the monetary base will

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QUESTION 17 Suppose the Feds decide to increase reserve requirements, which of the following will occur? O A. The SUPPLY of the monetary base will increase O B. The SUPPLY of the monetary base will decrease OC. The DEMAND for the monetary base will increase OD. The DEMAND for the monetary base will decrease QUESTION 18 Suppose the Feds decide to increase reserve requirements, which of the following will occur? O A The Federal Funds rate will decrease, expanding the economy. OB. The Federal Funds rate will decrease, contracting the economy OC. The Federal Funds rate will increase expanding the economy. OD. The Federal Funds rate will increase, contracting the economy. QUESTION 19 Suppose the Feds decide to increase reserve requirements, which of the following is likely to occur? . Unemployment will increase and inflation will increase O B. Unemployment will increase and inflation will decrease Unemployment will decrease and inflation will increase D.Unemployment will decrease and inflation will decrease

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