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History, 18.05.2021 17:30 longoriafaithe09

Arrange in the correct order the actions and reactions that occur when the Federal Reserve uses the required reserve ratio in its expansionary monetary policy. Households and businesses take out more loans.
GDP increases.
The money supply increases.
Banks have more money
to lend.
Purchases and investments
increase.
The Federal Reserve decreases
the required reserve ratio.
Interest rates fall.

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