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In the Market for Reserves,if the Federal Funds Rate Is

question 85

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In the market for reserves,if the federal funds rate is between the discount rate and the interest rate paid on excess reserves,a ________ in the reserve requirement increases the demand for reserves,________ the federal funds interest rate,everything else held constant.


Definitions:

Human Mind

The totality of conscious and unconscious mental processes and activities in a human being.

General Purpose

pertains to tools, machines, or software designed to perform a variety of functions rather than being specialized for one specific task.

Reinforcement

In behavioral psychology, a consequence applied that will strengthen an organism's future behavior whenever that behavior is preceded by a specific antecedent stimulus.

Skinner

B.F. Skinner, an American psychologist and behaviorist known for his work in developing the theory of operant conditioning, which involves learning through rewards and punishments.

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