Everything Else Held Constant,in the Market for Reserves,when the Federal

question 39

Multiple Choice

Everything else held constant,in the market for reserves,when the federal funds rate is 3%,lowering the interest rate paid on excess reserves rate from 2% to 1%

• A)lowers the federal funds rate.
• B)raises the federal funds rate.
• C)has no effect on the federal funds rate.
• D)has an indeterminate effect on the federal funds rate.

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Definitions:

Dependent Clause

An assembly of words featuring a subject and a verb, which lacks the capacity to communicate a complete concept and cannot exist as an independent sentence.

Complex Sentence

A sentence that contains one independent clause and at least one dependent clause, expressing more nuanced ideas.

Sentence Structure

The arrangement of words and phrases to create well-formed sentences in a language, crucial for clarity and effectiveness in communication.

Subordinate Clauses

A part of a sentence that contains a subject and a verb but cannot stand alone as a complete sentence; it depends on the main clause to make sense.