When the Federal Reserve calls in a discount loan from a bank,the monetary base ________ and reserves ________.

Name: When the Federal Reserve calls in a discount loan from a bank,the monetary base ________ and reserves ________.
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When the Federal Reserve calls in a discount loan from a bank, it reduces the bank's reserves, which leads to a decrease in the monetary base. Therefore, the best choice is C, where both the monetary base and reserves decrease.

When the Federal Reserve Calls in a Discount Loan from a Bank,the