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Assume that in the market for reserves, iff= 3.4%, id= 5.6% and ior= 1%.If the Federal Reserve Bank wants to increase the equilibrium interest rate
Assume that in the market for reserves, iff= 3.4%, id= 5.6% and ior= 1%.If the Federal Reserve Bank wants to increase the equilibrium interest rate in the market, then what can the Fed do?
A) lower the required reserve ratio
B) raise the discount rate
C) purchase securities
D) sell securities
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