The quantity of reserves demanded decreases as the federal funds rate rises because
A. people want more liquid assets as the federal funds rate rises.
B. the price of bonds rise as the federal funds rate rises.
C. the opportunity cost of holding excess reserves increases as the federal funds rate rises.
D. people want more money to invest as the federal funds rate rises.
Answer: C
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If aggregate expenditures exceed real GDP, then:
a. employment falls. b. the economy will have deflation. c. firms are depleting their inventories. d. the money supply will increase.
In what year was the Federal Reserve System created?
a. 1790 b. 1861 c. 1879 d. 1913 e. 1935
The U.S. inflation adjusted poverty threshold in 2014 was set at $35,000 per year for a family of four.
Answer the following statement true (T) or false (F)
Aggregate measures are
A) anything to do with economics. B) a total measure of a variable in the economy. C) used only by policymakers but not by firms. D) determined by the government.