Examlex

Solved

In the Market for Reserves,if the Federal Funds Rate Is

question 85

Multiple Choice

In the market for reserves,if the federal funds rate is between the discount rate and the interest rate paid on excess reserves,a ________ in the reserve requirement increases the demand for reserves,________ the federal funds interest rate,everything else held constant.


Definitions:

Capital Stock

The total amount of physical and financial assets owned by a business or economy, crucial for production capacity.

Business Income

Revenue derived from the operations of a business, typically consisting of the gross receipts or sales minus the cost of goods sold and other deductions.

Labor Demand

The complete number of employees that businesses aim to recruit at a specific salary level, during a specified time frame.

Low-wage Country

A Low-wage Country is one where the average remuneration for labor is significantly lower than that in developed countries, often leading to cost-focused offshoring by firms.

Related Questions