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Using the supply and demand analysis of the market for reserves, indicate what happens to the federal funds rate, borrowed reserves, and non-borrowed reserves, holding

  1. Using the supply and demand analysis of the market for reserves, indicate what happens to the federal funds rate, borrowed reserves, and non-borrowed reserves, holding everything else constant, under the following situations.
    1. Banks expect an unusually large increase in withdrawals from checking deposit accounts in the future.
    2. The Fed raises the target federal funds rate.
    3. The Fed reduces reserve requirements.

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