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    Exam 3: The Fed and Interest Rates
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    An Increase in Excess Reserves Will Cause
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An Increase in Excess Reserves Will Cause

Question 52

Question 52

Multiple Choice

An increase in excess reserves will cause


A) the Fed Funds rate to rise.
B) planned inventory investment to fall.
C) depository institutions to lend more freely.
D) foreign investors to buy more T-Bills.

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