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There are three moves the US Federal Bank can take to contract the economy . Demonstrate what happens to the price of reserves (x axis)

There are three moves the US Federal Bank can take to contract the economy . Demonstrate what happens to the price of reserves (x axis) and quantity of reserves (y axis) in graphs.

Note: price of reserve refers to the rate at which the bank is buying and selling.

1. Changing the requirements

2. Lending through a Discount Window

3. Engaging in Market Operations

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