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Question 1 (worth 25 points) In the market for reserves, a lower discount rate A) decreases the supply of reserves. B) increases the supply of

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Question 1 (worth 25 points) In the market for reserves, a lower discount rate A) decreases the supply of reserves. B) increases the supply of reserves. C) lengthens the vertical section of the supply curve of reserves. D) shortens the vertical section of the supply curve of reserves. Answer: Draw a graph to illustrate your answer. No graph, no credit

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