An Increase in the Overnight Interest Rate ________ Bank Reserves

question 46

Multiple Choice

An increase in the overnight interest rate ________ bank reserves and ________ the money supply if banks respond appropriately to the change in the rate.

• A)increases; increases
• B)increases; decreases
• C)decreases; increases
• D)decreases; decreases

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Definitions:

Pollutants

Substances introduced into the environment that cause harm or discomfort to organisms, often resulting from human activity.

Automobiles

Motor vehicles with four wheels, primarily designed for passenger transportation on roads.

Chlorofluorocarbons

Chemical compounds used in aerosols and refrigeration that deplete the ozone layer.

Toxic Sources

Influences or materials that are harmful or poisonous, potentially causing damage to health or well-being.