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    Economics Principles and Policy Study Set 2
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    Exam 29: Monetary Policy: Conventional and Unconventional
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    If Interest Rates Increase, What Will Happen to the Demand
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If Interest Rates Increase, What Will Happen to the Demand

Question 175

Question 175

Multiple Choice

If interest rates increase, what will happen to the demand for reserves?


A) It will shift outward.
B) It will shift inward.
C) Nothing, the economy will move to a new quantity demanded.
D) It depends on what happens to prices.

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