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A decrease in Cash Reserve Ratio will lead to ______ -

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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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