Multiple Choice
In the market for reserves,if the federal funds rate is between the discount rate and the interest rate paid on excess reserves,an increase in the reserve requirement ________ the demand for reserves,________ the federal funds rate,everything else held constant.
A) decreases;lowering
B) increases;lowering
C) increases;raising
D) decreases;raising
Correct Answer:
Verified
Correct Answer:
Verified
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