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All Else Equal, the _____ the Amount of Excess Reserves

Question 66

Multiple Choice

All else equal, the _____ the amount of excess reserves held by banks and the _____ the reserve requirement, the higher will be the amount of money created in the economy as a result of Federal Reserve buying Treasury securities.


A) lower; lower
B) lower; higher
C) higher; lower
D) higher; higher

Correct Answer:

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