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

question 39

Multiple Choice

Everything else held constant,in the market for reserves,when the supply for federal funds intersects the reserve demand curve along the horizontal section,lowering the interest rate paid on excess reserves

• 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 of the federal funds rate.

---

Definitions:

Gross Income Test

A requirement for determining if someone can be claimed as a dependent, based on their income level.

Specific Tests

Refer to criteria or conditions applied to determine eligibility or compliance in various contexts, such as tax law or regulations.

Qualifying Child

A dependent of a taxpayer that meets specific IRS criteria related to relationship, age, residence, and support for eligibility for certain tax benefits.

Joint Return Test

A requirement for certain tax benefits that mandates the taxpayer to file a joint tax return with their spouse.