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1. If the Federal Reserve lowers the target federal funds rate: a. The discount rate rises. b. Liquidity in the banking system is increased. c.
1. If the Federal Reserve lowers the target federal funds rate:
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| a. | The discount rate rises. |
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| b. | Liquidity in the banking system is increased. |
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| c. | Security prices fall. |
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| d. | Required reserves are also decreased. |
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