If the Fed reduces the supply of bank reserves, ________
A) investment increases B) consumption increases
C) the federal funds rate increases D) the federal funds rate falls
C
Economics
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Required reserves:
A. Are equal to the required reserve ratio times total reserves. B. Are the minimum amount of reserves a bank is required to hold. C. Represent the dollars a bank can lend. D. Must be held in a bank's vault.
Economics
Which of the following would result in a positive externality?
A) A local government sets a maximum price on gasoline. B) Taco Bell adds 15 new items to its dollar menu. C) Medical research results in a cure for Ebola. D) A solar panel manufacturer raises its prices due to increased demand.
Economics