When the Federal Reserve Banks decide to buy government bonds from banks and the public, the supply of reserves in the federal funds market Multiple Choice increases and the federal funds rate decreases increases and the federal funds rate increases decreases and the federal funds rate increases decreases and the federal funds rate decreases

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When the Federal Reserve Banks decide to buy government bonds from banks and the public, the supply of reserves in the federal funds market _____.

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increases and the federal funds rate decreases
increases and the federal funds rate increases
decreases and the federal funds rate increases
decreases and the federal funds rate decreases

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