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Suppose That the Market for Reserves Is in Equilibrium and Then

question 67

Multiple Choice

Suppose that the market for reserves is in equilibrium and then the Federal Reserve decreases the quantity of reserves by $2 billion. The federal funds rate will __________and the supply of loanable funds will __________.


Definitions:

Primary Sex Characteristics

The physical features that are directly involved in reproduction, such as the ovaries in females and the testes in males.

Sexually Mature

A state of biological development at which an individual is capable of reproducing.

Reproductive Organs

Structures in an organism that are involved in the production of offspring, including ovaries and testes.

Lawrence Kohlberg

An American psychologist best known for his theory of stages of moral development.

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