Everything else held constant, in the market for reserves, when the supply for federal funds intersects the reserve demand curve along the horizontal section of the demand curve, lowering the interest rate paid on excess reserves
A) increases the federal funds rate.
B) lowers the federal funds rate.
C) has no effect on the federal funds rate.
D) has an indeterminate effect of the federal funds rate.
B
You might also like to view...
What is a minimum wage? What are the effects of a minimum wage set below the equilibrium wage rate?
What will be an ideal response?
If market participants rely only past stock prices to forecast future stock prices,
A) they will be better able to forecast future price increases than future price decreases. B) they will be better able to forecast future price decreases than future price increases. C) they have adaptive expectations. D) they have rational expectations.
The unemployment rate equals the percentage of the adult population that is unemployed
a. True b. False Indicate whether the statement is true or false
A tariff on imported goods produced by an unlimited industry could benefit the members of the domestic union since the tariff would most likely
A) lower the price of the output that workers purchase. B) lower the domestic production of the good and increase wages. C) increase the demand for domestic, union-made goods. D) decrease the cost of the imported goods.