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    If the Fed Lends to Member Banks, What Happens to Reserves
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If the Fed Lends to Member Banks, What Happens to Reserves

Question 166

Question 166

Multiple Choice

If the Fed lends to member banks, what happens to reserves and the money supply?


A) Reserves increase and the money supply decreases.
B) Both increase.
C) Reserves decrease and the money supply increases.
D) Both decrease.

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