A Decrease in Federal Reserve Float Will

question 1

Multiple Choice

A decrease in Federal Reserve float will

• A)increase nonborrowed reserves.
• B)increase borrowed reserves.
• C)increase the federal funds rate.
• D)decrease the federal funds rate.

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Definitions:

Criterion Variable

The dependent variable in an experimental design, which is influenced or predicted by other variables.

Mediator Variable

A variable that explains the mechanism through which an independent variable influences a dependent variable in a causal relationship.

Predictor Variable

A variable, often designated as the independent variable, that is used to make predictions about (or is assumed to cause) changes in another variable.

Criterion Variable

The variable that is predicted or explained in a study, often considered the outcome or dependent variable.