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Assume the Federal Reserve has a federal funds rate target (ffr * ) at 1.5%. If there is an unexpected decrease in the demand for

Assume the Federal Reserve has a federal funds rate target (ffr * ) at 1.5%. If there is an unexpected decrease in the demand for reserves and the Federal Reserve wants to maintain the target rate, how does it affect the money supply? Explain with the aid of a supply and demand for reserves diagram.

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