To fight inflation, another monetary policy tool the Fed could use is to change the reserve requirement. With the goal of curbing inflation, the Fed should reserve requirements, and as the result, the equinbrium federal funds rate will A. increase; drop B. decrease; rise C. decrease; drop D. increase; rise QUESTION 20 The Fed is reluctant to use reserve requirements to control the money supply because A. of their overly-powerful impact on the money supply. B. they have the potential to create liquidify problems for banks with low excess reserves. C. frequent changes in reserve requirements complicate liquidity management for banks D. of all of the above. E. of only A and B of the above