Everything else held constant, in the market for reserves, when the federal funds rate is 3 , increasing the interest rate paid on excess reserves from 3 to 4 lowers the federal funds rate raises the federal funds rate has no effect on the federal funds rate has an indeterminate effect on the federal funds rate

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Question: Everything else held constant, in the market for reserves, when the federal funds rate is 3%, increasing the interest rate paid on excess reserves from

Everything else held constant, in the market for reserves, when the federal funds rate is 3%, increasing the interest rate paid on excess reserves from 3% to 4%

		lowers the federal funds rate.
		raises the federal funds rate.
		has no effect on the federal funds rate.
		has an indeterminate effect on the federal funds rate.

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