If Bank A borrows from Bank B, reserves in the banking system __________. If Bank A borrows from the Fed, reserves in the banking system __________
A) rise; fall
B) fall; remain unchanged
C) remain unchanged; remain unchanged
D) remain unchanged; rise
E) rise; remain unchanged
D
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Suppose that the dollar value rises from 100 to 125 yen. As a result, a. exports to Japan will likely increase
b. Japanese tourists will more likely visit the United States. c. U.S. businesses will be less likely to use Japanese shipping lines to transport their products. d. U.S. consumers will more likely buy Japanese-made automobiles.
For a given level of inflation, if there is a greater willingness by foreigners to purchase domestic goods, then the ________ shifts ________.
A. short-run aggregate supply line; upward B. aggregate demand curve; left C. short-run aggregate supply line; downward D. aggregate demand curve; right