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if you lower the reserves sitting in a bank, there will be more cash in…

Question

if you lower the reserves sitting in a bank, there will be more cash in circulation and that stimulates the economy. true false

Explanation:

Brief Explanations

Banks' reserves are funds they hold and don't lend out. Lowering reserves means banks can lend more. This increases the money - supply in circulation, which stimulates economic activity through increased spending and investment.

Answer:

True