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Using the supply and demand analysis of the market for reserves determine what happens to the federal funds rato borrowed serves, and onborrowed reserves holding

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Using the supply and demand analysis of the market for reserves determine what happens to the federal funds rato borrowed serves, and onborrowed reserves holding everything she constant The Fed raines the interest rate on reserves above the current equilibrium federal funds tato O A. The federal funds rate will increase, nonborrowed reserves will decrease, and borrowed reserves will not change OB. The federal funds rate will decrease, but nonborrowed reserves and borrowed reserves will not change OC The federal funds rate and borrowed reserves will not change, but nonborrowed reserves will decrease OD. The federal funds rate will increase, but nonbortowed reserves and borrowed reserves will not change Which of the following graphs best describes the shuation above? Federal F NER SER: Click Select your answer D Full Federal Funda Rate Rate R RS RD 2 RP RD NBR R NBR R NBR R NAR R Federal E Rate RS RD NBR NBR; R A Graph B. Graph E OC. Graph D 0. Graph A DE Graph B

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