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Question - If the US Federal Reserve increases the reserve requirement, it: Decreases the amount of excess reserves, and this eventually decreases the money supply

Question - If the US Federal Reserve increases the reserve requirement, it:

  1. Decreases the amount of excess reserves, and this eventually decreases the money supply
  2. Increases the amount of excess reserves, and this eventually decreases the money supply
  3. Increases the amount of excess reserves, and this eventually increases the money supply
  4. Decreases the amount of excess reserves, and this eventually increases the money supply

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