Other things being equal, if the Fed raises the interest rate paid on excess reserves
A. both the demand for reserves and the supply of reserves in the federal funds market will increase.
B. the supply of reserves in the federal funds market will increase.
C. the supply of reserves in the federal funds market will decrease.
D. both the demand for reserves and the supply of reserves in the federal funds market will decrease.
Answer: C
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Refer to the Article Summary. Based on the difference between the face value of Super Bowl tickets and the prices being charged in the resale market, the demand at the face value of the tickets is
A) elastic. B) unit elastic. C) inelastic. D) perfectly elastic.
If velocity were constant, as assumed by the pre-Keynesian version of the quantity theory, then a 10% change in the money supply would cause
A) a proportionate change in prices. B) a proportionate change in output. C) the sum of proportionate change in P and Y equals 10%. D) the net difference of proportionate change in P and Y equals 10%.
Consuming one more of a good increases its marginal-utility-to-price ratio, and consuming one less of the other good lowers its marginal-utility-to-price ratio
a. True b. False Indicate whether the statement is true or false
Wage rates in other markets are assumed constant along the labor supply curve for a particular labor market
a. True b. False