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Scenario: Money and Interest Rates Banks Decide to Do Away

Question 208

Multiple Choice

Scenario: Money and Interest Rates Banks decide to do away with fees charged when other banks' customers use the bank's own ATM. If the money supply remains constant, interest rates will likely:


A) decrease.
B) increase.
C) remain the same.
D) increase or decrease, depending upon what maximizes profits for the largest commercial banks.

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