When the Fed introduced the interest on reserves rate, how did the opportunity cost of holding reserves and the quantity of reserves willingly held change?   The opportunity cost of holding reserves _______ and the quantity of reserves willingly held ________.     A. did not change; did not change   B. fell; increased   C. increased; increased   D. fell; decreased

Q: Construct the money market model and briefly explain each letters a, b, and c a. why money demand…

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Q: None

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