If the Fed increases the quantity of reserves, the federal funds rate ________ and the quantity of money ________.

Name: If the Fed increases the quantity of reserves, the federal funds rate ________ and the quantity of money ________.
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Question

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When the Fed increases the quantity of reserves, the federal funds rate falls due to the increased supply of money. Consequently, the quantity of money in the economy increases as banks have more reserves to lend out.

If the Fed Increases the Quantity of Reserves, the Federal