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Question
A decrease in Cash Reserve Ratio will lead to ______
Options
fall in aggregate demand.
the rise in aggregate demand.
no change in aggregate demand.
fall in the general price level.
MCQ
Fill in the Blanks
Solution
A decrease in Cash Reserve Ratio will lead to no change in aggregate demand.
Explanation:
A drop in the CRR would enhance aggregate demand if all other factors were equal.
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