The higher the federal funds rate, the _{--------------------}the opportunity cost of holding reserves, which_{--------------------} the incentive to economize on reserves.

Name: The higher the federal funds rate, the -------------------- the opportunity cost of holding reserves, which -------------------- the incentive to economize on reserves.
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A higher federal funds rate increases the opportunity cost of holding reserves, which in turn increases the incentive to economize on reserves.

The Higher the Federal Funds Rate, the --------------------the Opportunity Cost

The Higher the Federal Funds Rate, the _{--------------------}the Opportunity Cost