Economy, asked by monikasaxena6655, 7 months ago

decrease in cash reserve ratio will lead to ​

Answers

Answered by parishmitad978Pari
1

Answer:

During inflation, CRR is raised. A rise in CRR reduces the reserves of high powered money with commercial banks. This reduces the credit creation capacity. Accordingly aggregate demand falls, as required to correct inflationary gap in the economy.

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