Question: Everything else held constant, in the market for reserves, when the federal funds rate is 4%, raising the discount rate from 4% to 5% increases

Everything else held constant, in the market for reserves, when the federal funds rate is 4%, raising the discount rate from 4% to 5%

increases the borrowed reserves

increases the nonborrowed reserves

decreases the borrowed reserves

decreases the nonborrowed reserves

none of the above

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