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According to the textbook, sleep consolidates our memories by reactivating recent experiences stored in the _____ and then shifting them for permanent storage elsewhere in the cortex.

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Greenleafable
The correct answer is the hippocampus.
The hippocampus is the part of a mammal's brain which is responsible for keeping short-term memory and then turning it into long-term memory. So here, we can see that sleep transforms our short-term memories stored into our hippocampus into permanent memories stored somewhere else.