Question: Everything else held constant, in the market for reserves, when the federal funds rate is 1%, increasing the interest rate paid on excess reserves from

Everything else held constant, in the market for reserves, when the federal funds rate is 1%, increasing the interest rate paid on excess reserves from 1% to 2%

Select one:

a. lowers the federal funds rate

b. raises the federal funds rate

c. .has no effect on the federal funds rate

d. has an indeterminate effect on the federal funds rate

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