Interest Rate on Reserves = 1.25% Discount Rate = 6.50% Federal Funds Rate = 1.25% Required...

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Economics

Interest Rate on Reserves = 1.25% Discount Rate = 6.50% Federal Funds Rate = 1.25% Required Reserve Rate = 10% Unemployment Rate = 6.1% Inflation Rate = 3.1% If the Fed lowers the required reserve rate to 9%, how will this affect the FFR? Question 38 options: a. The FFR will increase b. The FFR will decrease c. The FFR will stay the same d. The FFR will increase or stay the same e. The FFR will decrease or stay the same

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