In the market for reserves, if the federal funds rate is between the d
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
ANSWER
C
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