In the market for reserves, a lower interest rate paid on excess reserves
A) decreases the supply of reserves.
B) increases the supply of reserves.
C) decreases the effective floor for the federal funds rate.
D) increases the effective floor for the federal funds rate.
C
Economics
You might also like to view...
Which of the following is one of the concerns over having U.S. auto producers in China?
a. They will dump back onto U.S. markets. b. They will allow technology to leak to Chinese competitors. c. They cannot compete with the Japanese. d. They will allow the Chinese competitors to steal their business model.
Economics
Inventories are goods that can be considered as "purchased" by
a. the firms that produce them. b. the consumers that ultimately buy them. c. the government since they are tax deductible. d. no one since they are not counted as part of GDP.
Economics