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Assets Liabilities Reserves $10,000 Demand (D ) Lowering the reserve requirement $60,000 (E) Targeting a higher federal funds rate Deposits Loans $90,000 Savings $40,000 Deposits

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Assets Liabilities Reserves $10,000 Demand (D ) Lowering the reserve requirement $60,000 (E) Targeting a higher federal funds rate Deposits Loans $90,000 Savings $40,000 Deposits

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