On a Graph of the Supply and Demand for Reserves

question 40

Multiple Choice

On a graph of the supply and demand for reserves, if there is discount lending, what would the Fed have to do to raise the equilibrium federal funds rate?

• A) buy bonds
• B) sell bonds
• C) raise the reserve requirement
• D) none of the above

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Definitions:

Mean Salary

The average salary calculated by summing all salaries and dividing by the number of salaries.

Population Standard Deviation

A measure of the spread of a set of values in a population, giving insight into the variability within the entire population.

Sample Size

The number of observations or elements selected from a population to be included in a sample.

Upper Limit

The highest value in a range or set of data, often referring to the maximum point in an interval or boundary in statistical analysis.