Which economic decision would be most influenced by a change to interest
on reserves?
A. An individual is deciding whether to take out a bank loan.
B. A bank is deciding whether to lend money or keep it in reserve.
C. An investor is deciding whether to purchase treasury securities.
D. A business is deciding whether to hire additional employees.

Answer :

Answer: B

A bank is deciding whether to lend money or keep it in reserve

chilljain33

An economic decision when a bank decides between lending money or keeping the money in reserves is a decision that would be most influenced by a change to interest on reserves. Therefore, the option B holds true.

What is the significance of an economic decision?

An economic decision is referred to or considered as a decision that has an impact on the economy of an individual or the entire society at large. Moreover, such decisions might be taken due to internal as well as external factors.

A change to interest reserves is a macroeconomic decision, and thus it would the least affect the decisions of individuals. Thus, it may lead to a change in the economic decision made by aggregates such as banks that are a part of the macroeconomic society.

Therefore, the option B holds true regarding the significance of an economic decision.

Learn more about an economic decision here:

https://brainly.com/question/3369578

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