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A Borrowed Reserves Target Is ________ Because Increases in Income

Question 106

Multiple Choice

A borrowed reserves target is ________ because increases in income ________ interest rates and discount loans,causing the Fed to ________ the monetary base,everything else held constant.


A) procyclical;increase;increase
B) countercyclical;increase;increase
C) procyclical;reduce;reduce
D) countercyclical;reduce;reduce

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