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Before the financial crisis of 2007-2009, when the Federal Reserve Banks bought bonds from banks, the reserve balances of those banks would increase and cause

Before the financial crisis of 2007-2009, when the Federal Reserve Banks bought bonds from banks, the reserve balances of those banks would increase and cause them to lend Multiple Choice more in the federal funds market, decreasing the federal funds rate. more in the federal funds market, increasing the federal funds rate. less in the federal funds market, decreasing the federal funds rate. less in the federal funds market, increasing the federal funds rate

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