If the Federal Reserve lowered the reserve requirements imposed on the banking industry, which of the following will most likely happen in the short run?
a. an increase in the demand for loanable funds, which will exert upward pressure on the interest rate
b. an increase in the supply of loanable funds, which will exert downward pressure on the interest rate
c. an increase in the unemployment rate
d. a decrease in the rate of inflation
B
Economics
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It is appropriate to use the supply-and-demand model in which of the following markets?
A) beer market B) car market C) wheat market D) market for breakfast cereal
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When x increases leading decrease in output, a better policy tool is
A) decrease in policy rate. B) increase in policy rate. C) increase in government spending. D) decrease in government spending.
Economics