If the Fed Increases the Quantity of Reserves, the Federal

question 166

Multiple Choice

If the Fed increases the quantity of reserves, the federal funds rate __________and the quantity of money __________.

• A) falls; decreases
• B) falls; increases
• C) rises; increases
• D) rises; decreases

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Definitions:

Design

The process of envisioning and planning the creation of objects, systems, or interactive experiences to fulfill specific functions or intents.

Network Capable

Able to connect and operate within a network, allowing for communication and data exchange between networked devices.

Electronic Device

A device that uses electricity to perform a function, such as a smartphone or laptop.