Question: if the Fed has an interest-rate target, why will an increase in the demand for reserves lead to a rise in the money supply? A.

if the Fed has an interest-rate target, why will an increase in the demand for reserves lead to a rise in the money supply?

A. The Fed will increase reserve requirements.

B. The Fed will conduct open market purchases.

C. The Fed will increase the discount rate.

D. The Fed will conduct open market sales

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