Everything else remaining unchanged, if the demand curve for reserves shifts to the right and borrowed reserves is zero:
A) there will be a decrease in both the federal funds rate and the quantity of reserves.
B) there will be an increase in the federal funds rate but no change in the quantity of reserves.
C) there will be an increase in both the federal funds rate and the quantity of reserves.
D) there will be a decrease in the federal funds rate but no change in the quantity of reserves.
B
You might also like to view...
If an entire industry relocates to a foreign country, the relocation leads to a higher rate of ________ unemployment
A) frictional B) structural C) structural and frictional D) cyclical E) structural and cyclical
Which of the following $1,000 face-value securities has the lowest yield to maturity?
A) a 5 percent coupon bond selling for $1,000 B) a 10 percent coupon bond selling for $1,000 C) a 15 percent coupon bond selling for $1,000 D) a 15 percent coupon bond selling for $900