Author Question: To complement actions by the Fed to reduce inflation, Congress and the President can cut spending ... (Read 56 times)

renzo156 · **on:** Jun 29, 2018

To complement actions by the Fed to reduce inflation, Congress and the President can cut spending and/or raise taxes.

Indicate whether the statement is true or false

Question 2

Suppose a bank has 100 million in checking account deposits with no excess reserves and the required reserve ratio is 10 percent. If the Federal Reserve reduces the required reserve ratio to 4 percent, then the bank can make a maximum loan of

A) 0. B) 4 million. C) 6 million. D) 10 million.