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If the Fed uses the federal funds rate as an interest rate target, an increase...

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Finance

If the Fed uses the federal funds rate as an interest rate target, an increase in the demand for reserves will result in a(n) ________ in ________.

increase; nonborrowed reserves

decrease; nonborrowed reserves

increase; the federal funds interest rate

decrease; the federal funds interest rate

None of the above is correct.

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