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A Borrowed Reserves Target Is ________ Because Increases in Income

question 106

Multiple Choice

A borrowed reserves target is ________ because increases in income ________ interest rates and discount loans,causing the Fed to ________ the monetary base,everything else held constant.


Definitions:

Isotonic

A solution that has the same salt concentration as cells and blood, preventing net water movement across cell membranes.

NaCl

Sodium chloride, commonly known as table salt, is an ionic compound consisting of sodium and chloride ions.

Solute

Substance that is dissolved in a solvent, forming a solution.

Solvent

Liquid portion of a solution that serves to dissolve a solute.

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