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    ECON Macro Principles
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    Exam 14: Banking and the Money Supply
  5. Question
    How Does a Higher Bank Rate Affect Reserves
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How Does a Higher Bank Rate Affect Reserves

Question 119

Question 119

Multiple Choice

How does a higher bank rate affect reserves?  


A)  Desired reserves increase. 
B)  Desired reserves decrease. 
C)  Excess reserves decrease. 
D)  Excess reserves increase.

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