If the Fed Increases Reserve Requirements,the Demand for Reserves ________

question 93

Multiple Choice

If the Fed increases reserve requirements,the demand for reserves ________ and the equilibrium federal funds rate ________.

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

Calculate real GDP from nominal GDP data using the GDP deflator.

Analyze economic growth or decline using real GDP data.

Understand and calculate the impact of price changes on nominal and real GDP.

Understand how to calculate percentage changes in GDP using real GDP and the GDP deflator.

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