Within the Market for Reserves, an Increase in the Quantity

question 212

Multiple Choice

Within the market for reserves, an increase in the quantity of reserves results in a

• A) rise in the equilibrium real wage rate.
• B) fall in the equilibrium money wage rate.
• C) fall in the equilibrium federal funds rate.
• D) rise in the equilibrium federal funds rate.

---

Definitions:

Marginal Social Cost

Marginal social cost is the total cost to society of producing one additional unit of a good, including both private costs and any externalities.

Environmental Standard

Regulations and criteria set to control pollution levels and protect environmental health by defining acceptable limits of pollutants or environmental impacts.

Quantity of Pollution

The total amount of pollutants released into the environment by an entity over a specific period, usually measured for regulatory or control purposes.

Marginal Social Benefit

The additional benefit to society from the production or consumption of one more unit of a good or service.