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If the central bank increases the bank rate, commercial banks are _____ reserves and this in turn causes the money supply to ______. Select one:
If the central bank increases the bank rate, commercial banks are _____ reserves and this in turn causes the money supply to ______. Select one: a. discouraged from borrowing / decrease b. encouraged to borrow / increase c. discouraged from borrowing / increase d. encouraged to borrow / decrease e. Both A and B are correct
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