The federal reserve has decided that interest rates need to

Reference no: EM13616641

The Federal Reserve has decided that interest rates need to be increased to maintain low inflation in the economy. To accomplish this goal, the Fed has determined that the money supply needs to be decreased by $188 billion. It wants to implement this decrease by working through reserves at financial institutions. Reserve requirement is 6%. By how much must reserves be decreased.

Reference no: EM13616641

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