Why would a reduction in the required reserve ratio not be a powerful tool when banks choose

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Why would a reduction in the required reserve ratio not be a powerful tool when banks choose to hold substantial quantities of excess reserves?

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Exploring Economics

ISBN: 9781439040249

5th Edition

Authors: Robert L Sexton

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Question Posted: Feb 07, 2013 05:55 AM

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Why would a reduction in the required reserve ratio not be a powerful tool when banks choose

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