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The higher the cash rate, the ________ the opportunity cost of holding reserves, which ________ the incentive for banks to hold reserves. a.lower; decreases b.higher;

The higher the cash rate, the ________ the opportunity cost of holding reserves, which ________ the incentive for banks to hold reserves.

a.lower; decreases

b.higher; decreases

c.lower; increases

d.higher; increases

e.lower; does not change

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