An increase in the discount rate will result in:
A) increase in bank reserves and a decrease in the federal funds rate.
B) increase in bank reserves and an increase in the federal funds rate.
C) decrease in bank reserves and a decrease in the federal funds rate.
D) decrease in bank reserves and an increase in the federal funds rate.
D
Economics
You might also like to view...
Which measurement of poverty and inequality takes into account living conditions such as life expectancy, literacy rates, and years of schooling?
a. UN Millennium Development Goals b. Gini coefficient c. Gender Development Index d. Human Development Index
Economics
Suppose that a consumer has a marginal propensity to consume of 0.7. If this consumer earns an extra €2, her consumption spending would be expected to increase by:
A. €0.60. B. €0.70. C. €1.40. D. €1.70.
Economics