Expansionary monetary policy:

In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, an increase in the reserve requirement ________ the ________ for reserves and causes the federal funds interest rate to

rise, everything else held constant. A) decreases; demand B) increases; demand C) increases; supply D) decreases; supply

A government policy to improve farm incomes by supporting agricultural prices at a level above equilibrium will reduce consumer's surplus

Indicate whether the statement is true or false