The figure above shows the market for bank reserves in Futureland. If the Bank of Futureland undertakes an open market sale of government securities that changes the quantity of reserves by $25 billion, then the federal funds rate will
A) remain at 4 percent a year.
B) rise to 6 percent a year.
C) fall to 4 percent a year.
D) change, but more information is needed to determine by how much.
E) None of the above answers is correct.
B
Economics
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A market is in equilibrium when
A) supply is equal to demand. B) the price is adjusting upward. C) the quantity supplied is equal to the quantity demanded. D) tastes and preference remain constant.
Economics
The optimal number of workers for a perfectly competitive firm to hire occurs when
A. diminishing marginal productivity is first experienced. B. the wage rate equals the marginal product of the last worker. C. the wage rate equals the value of marginal product of the last worker. D. total labor cost equals total revenue.
Economics