types of economies, business cycle, taxes, fiscal/\nthe federal reserve raises the reserve…
types of economies, business cycle, taxes, fiscal/\nthe federal reserve raises the reserve requirement.\ndecreases the money supply\nincreases the money supply
Answer
Brief Explanation:
When the Federal Reserve raises the reserve - requirement, banks are required to hold more funds in reserve. This reduces the amount of money banks can lend out, thus decreasing the money supply in the economy.
Answer:
Decreases the money supply