When the central bank lowers the reserve requirement on deposits:
A. the money supply increases and interest rates decrease.
B. the money supply and interest rates decrease.
C. the money supply and interest rates increase.
D. the money supply decreases and interest rates increase.
Answer:A
When the central bank lowers the reserve requirement on deposits:
A. the money supply increases and interest rates decrease. B. the money supply and interest rates decrease. C. the money supply and interest rates increase. D. the money supply decreases and interest rates increase.
Explanation: Type: Multiple Choice