Which of the Following Is Likely to Happen to the Demand

question 192

Multiple Choice

Which of the following is likely to happen to the demand curve for reserves if the federal funds rate increases,everything else remaining constant?

• A) The demand curve for reserves will shift to the right.
• B) The demand curve for reserves will shift to the left.
• C) There will be a downward movement along the demand curve for reserves.
• D) There will be an upward movement along the demand curve for reserves.

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Definitions:

Warren Buffett

An American investor, business tycoon, philanthropist, and the chairman and CEO of Berkshire Hathaway, known for his successful investment strategies.

Average Tax Rate

The percentage of taxable income that is paid in taxes; taxes paid divided by taxable income.

Stock Market Investor

An individual or entity that allocates capital with the expectation of receiving financial returns in the stock market.

Marginal Tax Rate

The tax rate that applies to the next dollar of taxable income; the percentage of tax applied to your income for each tax bracket in which you qualify.