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In the Market for Reserves,if the Federal Funds Rate Is

Question 103

Multiple Choice

In the market for reserves,if the federal funds rate is above the interest rate paid on excess reserves,an open market purchase ________ the ________ of reserves which causes the federal funds rate to fall,everything else held constant.


A) increases;supply
B) increases;demand
C) decreases;supply
D) decreases;demand

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