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Assume that in the market for reserves, the rates are as follows: id> iff> ior.If there is a macroeconomic shock in the economy and commercial
Assume that in the market for reserves, the rates are as follows: id> iff> ior.If there is a macroeconomic shock in the economy and commercial banks suddenly require larger amounts of reserves, then the ______ curve for reserves will shift and the equilibrium rate will _______.
A) supply; fall
B) supply; rise
C) demand; fall
D) demand; rise
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