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MMLU / Lowering reserve requirements would

Problem

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question

Lowering reserve requirements would

choices

  1. force banks to hold more reserves and make more loans.
  2. allow banks to make more loans and buy more investments thus decreasing the money supply.
  3. allow banks to make more loans and buy more investments thus increasing the money supply.
  4. allow banks more freedom to merge and acquire other businesses.

subject

high_school_macroeconomics

Discussion

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Source and history

Official source

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