Raising the interest paid on reserves has the effect of making it:
A. More costly for banks to hold excess reserves
B. Less costly for banks to hold excess reserves
C. More attractive for banks to lend out their excess reserves
D. Less attractive for banks to hold required reserves
B. Less costly for banks to hold excess reserves
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Refer to Table 19-11. Nominal GDP for Tyrovia in 2016 equals
A) $1,140. B) $880. C) $690. D) $560.
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen asĀ
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward