When the Fed raises interest rates on excess reserves, they are attempting to encourage bank lending.

Name: When the Fed raises interest rates on excess reserves, they are attempting to encourage bank lending.
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When the Fed raises interest rates on excess reserves, they are actually trying to discourage bank lending by making it more profitable for banks to hold onto their excess reserves instead of lending them out to consumers and businesses.

When the Fed Raises Interest Rates on Excess Reserves, They