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Refer to the information provided in Figure 11.5 below to answer the questions that follow.
Multiple Choice:A.the Fed increases the reserve requirement.
Solution
B is correct.
when the curve shifts from 0 to 1, it means the availability and supply of funds are increased. it
happens because of Fed decreases the discount rate only.

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  • 1. Refer to the information provided in Figure 11.5 below to answer the questions that follow. Multiple Choice:A.the Fed increases the reserve requirement. Solution B is correct. when the curve shifts from 0 to 1, it means the availability and supply of funds are increased. it happens because of Fed decreases the discount rate only.