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The reserve requirement rate refers to the percentage of a bank's deposits that it must hold as reserves. If a central bank raises the reserve
The reserve requirement rate refers to the percentage of a bank's deposits that it must hold as reserves. If a central bank raises the reserve requirement rate, what is the likely impact on the money supply?
A. The money supply will increase
B. The money supply will decrease
C. The money supply will remain unchanged
D. The impact on the money supply is unpredictable
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