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The Effect on the Market for Loans of an Increase

Question 133

Multiple Choice

The effect on the market for loans of an increase in both the reserve requirement and the Fed's purchase of securities on the open market would be shown by the movement from S1 to S2 in:


A) Figure C.
B) Figure D.
C) Figure C and Figure D, respectively.
D) Figure D and Figure C, respectively.

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