Other things held constant,if the Fed increases its payment of interest on bank reserves,the money supply will decrease.

Name: Other things held constant,if the Fed increases its payment of interest on bank reserves,the money supply will decrease.
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When the Fed increases its payment of interest on bank reserves, it incentivizes banks to hold onto their reserves rather than lend them out, which decreases the amount of money in circulation and thus decreases the money supply.

Other Things Held Constant,if the Fed Increases Its Payment of Interest