What happens when CRR is increased?a.Decrease in inflationb.Decrease in money supplyc.Increase in demand for moneyd.All of the above
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Solution 1
When CRR (Cash Reserve Ratio) is increased, several effects can occur. Let's break it down step by step:
- Decrease in inflation: Increasing the CRR means that banks are required to hold a higher percentage of their deposits as reserves with the central bank. This reduces the amount of money avail Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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