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If the Fed Uses Nonborrowed Reserves,a Reserve Aggregate,as a Target,fluctuations

Question 17

Multiple Choice

If the Fed uses nonborrowed reserves,a reserve aggregate,as a target,fluctuations in the reserves demand curve will cause ________ to fluctuate.

A) nonborrowed reserves
B) the federal funds interest rate
C) monetary aggregates
D) the inflation rate

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