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In the market for reserves today, the federal funds rate is below the discount rate set by the FR Bank.After a FOMC meeting the FR
In the market for reserves today, the federal funds rate is below the discount rate set by the FR Bank.After a FOMC meeting the FR Bank decides they want to lower the equilibrium rate paid for reserves.In this case, the FR Bank should
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increase the required reserve ratio
increasethe discount rate
sellsecurities
buy securities
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