In the Market for Reserves,if the Federal Funds Rate Is

question 79

Multiple Choice

In the market for reserves,if the federal funds rate is above the interest rate paid on excess reserves,an open market sale ________ the ________ of reserves,causing the federal funds rate to increase,everything else held constant.

• A)increases;supply
• B)increases;demand
• C)decreases;supply
• D)decreases;demand

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