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Which of the following is likely to happen if the quantity of bank reserves held at the Fed increases?

Dante52

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Which of the following is likely to happen if the quantity of bank reserves held at the Fed increases?

Which of the following is likely to happen if the quantity of bank reserves held at the Fed increases?

▸ The number of loans issued by banks decreases.

▸ The real interest rate increases.

▸ The stock of money in the economy increases.

▸ Bank deposits decrease.

Textbook

Macroeconomics

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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