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At the federal funds market equilibrium, ________.

rafiki121

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At the federal funds market equilibrium, ________.

At the federal funds market equilibrium, ________.

▸ both the federal funds rate and the total quantity of reserves tend to fall automatically

▸ the equilibrium quantity of reserves demanded exceeds the equilibrium quantity of reserves supplied by the Fed

▸ both the federal funds rate and the total quantity of reserves tend to rise automatically

▸ the equilibrium quantity of reserves demanded is equal to the equilibrium quantity of reserves supplied by the Fed

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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