What happens to reserve demand and the supply of reserves, Macroeconomics

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What happens to reserve demand and the supply of reserves

Problem

Suppose the economy's income falls, reducing the demand for money. If the Fed keeps its target for the funds rate constant, what happens to reserve demand and the supply of reserves? If instead the Fed keeps the supply of reserves constant, what happens to the funds rate?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: What happens to reserve demand and the supply of reserves

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