If the Fed increases the reserve requirement, a. banks will issue more loans. b. consumers will save more. c. banks will issue fewer loans. d. consumers will save less

If the Fed increases the reserve requirement,

a. banks will issue more loans.

b. consumers will save more.

c. banks will issue fewer loans.

d. consumers will save less

 

answer:

c. banks will issue fewer loans.

Reason

Increasing reserve requirement means banks to have more cash or liquidity in their deposit, so they have an inability to give off loans to more people.

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