Everything Else Remaining Unchanged,if the Demand Curve for Reserves Shifts

question 130

Multiple Choice

Everything else remaining unchanged,if the demand curve for reserves shifts to the left and the value of borrowed reserves is zero,________.

• A) there will be an increase in both the federal funds rate and the quantity of reserves
• B) there will be a decrease in both the federal funds rate and the quantity of reserves
• C) there will be a decrease in the federal funds rate but no change in the quantity of reserves
• D) there will be an increase in the federal funds rate but no change in the quantity of reserves

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Definitions:

Popery

A derogatory term historically used to refer to the Roman Catholic Church and its practices and beliefs, often employed in the context of Protestant criticism.

Sir Humphrey Gilbert

An English navigator and explorer in the 16th century, recognized for his efforts in attempting to establish the first English colony in North America.

Sir Walter Raleigh

An English adventurer, writer, and courtier of Queen Elizabeth I, known for popularizing tobacco in England and for his attempts to establish colonies in the Americas.

Virginia Company

A joint-stock enterprise that King James I chartered in 1606. The company was to spread Christianity in the New World as well as find ways to make a profit in it.