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In the market for reserves, suppose that the federal funds rate and discount rate are both at 7%.If the Federal Reserve Bank sells securities in

In the market for reserves, suppose that the federal funds rate and discount rate are both at 7%.If the Federal Reserve Bank sells securities in the open market, then the equilibrium rate for reserves will _____ and the amount of borrowed reserves will ______.

A) not change; decrease

B) not change; increase

C) rise; increase

D) rise; decrease

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