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    Financial System and the Economy Principles
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    Exam 25: Policy Implementation
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    Ceteris Paribus, If the Quantity Demanded of Reserves Is Less
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Ceteris Paribus, If the Quantity Demanded of Reserves Is Less

Question 18

Question 18

Multiple Choice

Ceteris paribus, if the quantity demanded of reserves is less than the quantity supplied of reserves, the fed funds rates will


A) decrease.
B) remain the same.
C) increase.
D) increase dramatically

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