If the federal funds rate is below the equilibrium federal funds rate, then the supply of reserves would be __________ than the demand for reserves and the banks would try to __________ reserves causing the federal funds rate to fall
A) greater than; lend
B) greater than; borrow
C) less than; lend
D) less than; borrow
D
Economics
You might also like to view...
An increase in total revenue will result if
A) demand is inelastic and price decreases. B) demand is elastic and price decreases. C) demand is elastic and price increases. D) demand is unitary elastic and price increases.
Economics
Expectations that the price level will decrease in the future will
What will be an ideal response?
Economics