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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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