In the model of the money supply process, the Federal Reserve's role in influencing the money supply is represented by

In the model of the money supply process, the Federal Reserve's role in influencing the money supply is represented by




A) both the required reserve ratio and the market interest rate.
B) the required reserve ratio, nonborrowed reserves, and borrowed reserves.
C) only borrowed reserves.
D) only nonborrowed reserves.



Answer: B