The quantity of reserves demanded decreases as the federal funds rate rises because
a. people want more liquid assets as the federal funds rate rises.
b. the price of bonds rise as the federal funds rate rises.
c. the opportunity cost of holding excess reserves increases as the federal funds rate rises.
d. people want more money to invest as the federal funds rate rises.
c
Economics
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Printing money to meet government budget deficits:
A) helps combat inflation. B) increases real income. C) increases the demand for money. D) acts as a tax on the citizens in an economy.
Economics
On what type of income do many economists believe that people base their consumption?
Economics