In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, an increase in the reserve requirement ________ the demand of reserves and causes the federal funds interest rate to
________, everything else held constant. A) decreases; fall
B) increases; fall
C) increases; rise
D) decreases; rise
C
You might also like to view...
Banks with which type of loans were most likely to fail during the early 1930s?
A) mortgage loans B) agricultural loans C) commercial real estate loans D) international loans
Endogenous variables
A) are correlated with the error term. B) always appear on the LHS of regression functions. C) cannot be regressors. D) are uncorrelated with the error term.
How many members are there on the Board of Governors of the Federal Reserve?
a. 12 b. 50 c. 7 d. 4 e. 14
In a perfectly balanced oligopoly (with eight firms, all having the same market share), if any one firm captures 1 percent of the market from one of the others,
a. c and d b. the eight-firm concentration ratio will increase c. the eight-firm concentration ratio will decrease d. the Herfindahl-Hirschman index will rise e. the Herfindahl-Hirschman index will fall