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

question 19

Multiple Choice

Everything else held constant,in the market for reserves,when the demand for federal funds intersects the reserve supply curve on the vertical section,increasing the discount rate

• A)increases the federal funds rate.
• B)lowers 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:

Positive

In the context of economics, it can refer to positive statements that are objective and can be tested by looking at the facts.

Negative

Refers to amounts, values, or directions less than zero, often indicating deficit or loss in financial and scientific contexts.

Marginal Utility

The additional satisfaction or utility gained from consuming one more unit of a good or service, which typically decreases with each additional unit consumed.

Total Utility

The total satisfaction or benefit received by consuming a specific quantity of a good or service.