Help ASAP please
The Federal Reserve Bank lowered the required reserve ratio to 0% across the board in 2020. Explain the potential reasoning behind this lowering to 0% and its intended effect on the economy.

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26-07-2022
Business

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Help ASAP please
The Federal Reserve Bank lowered the required reserve ratio to 0% across the board in 2020. Explain the potential reasoning behind this lowering to 0% and its intended effect on the economy.

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ewomazinoade ewomazinoade · Answer 1 · 2022-07-27T17:18:45+02:00

The reasoning behind lowering the required reserve ratio to 0% is to increase the money supply. The intended effect is to boost production activities.

What is an expansionary monetary policy?

Expansionary monetary policy are polices taken to increase money supply. When money supply increases, aggregate demand increases and this boosts production.

Reducing the required reserve ratio and open market purchase are ways of carrying out expansionary monetary policy

To learn more about monetary policy, please check: brainly.com/question/3817564

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Help ASAP please The Federal Reserve Bank lowered the required reserve ratio to 0% across the board in 2020. Explain the potential reasoning behind this lowering to 0% and its intended effect on the economy.

Respuesta :

What is an expansionary monetary policy?

Otras preguntas

Help ASAP please
The Federal Reserve Bank lowered the required reserve ratio to 0% across the board in 2020. Explain the potential reasoning behind this lowering to 0% and its intended effect on the economy.