Other Things Equal, Which of the Following Would Increase the Federal

question 322

Multiple Choice

Other things equal, which of the following would increase the federal funds rate?

• A)a decrease in loan demand in the federal funds market
• B)a decrease in the reserve ratio
• C)Fed purchases of government securities from banks
• D)a decline in excess reserves in the banking system

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Definitions:

Vasoconstriction

Narrowing of the diameter of blood vessels.

Collagen Fibers

Strong, flexible fibers found in connective tissue, providing support and elasticity.

Platelets

Small cell fragments in the blood that are crucial for blood clotting and wound healing, preventing excessive bleeding.

Thrombin

An enzyme in the blood that facilitates the conversion of fibrinogen to fibrin, playing a critical role in the clotting process.