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Like many consumer goods, the Federal Runds reserves exhibits a downward sloping demand curve, which means that as the cost of funds increases by way

Like many consumer goods, the Federal Runds reserves exhibits a downward sloping demand curve, which means that as the cost of funds increases by way of higher interest rates,

more money will be demanded.

money demanded will remain constant.

less money will be demanded.

All of the above are correct.

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