An Open Market Purchase

question 11

Multiple Choice

An open market purchase

• A) shifts the supply curve for reserves to the right and causes the federal funds rate to fall.
• B) shifts the demand curve for reserves to the right and causes the federal funds rate to rise.
• C) shifts the supply curve for reserves to the left and causes the federal funds rate to rise.
• D) shifts the demand curve for reserves to the left and causes the federal funds rate to fall.

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Definitions:

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A temporary state of mind or feeling.

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Statements or propositions from which conclusions are drawn in logical arguments.

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