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How does the reserve ratio change if the Fed increases the required reserve ratio? How does the currency-deposit ratio change
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When Fed increase required reserve ratio, banks will keep more money in reserves and will have less money to lend to customers. Therefore when reserve ratio increases, money multiplier declines.

Currency to deposit ratio will increase and banks will have fewer funds for deposits and thereby less to lend.

When people decide to hold zero currency, money supply will be equal to deposits and monetary base will also be equal to reserves thus money multiplier will be equal to 1/reserve deposit ratio.

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