Multiple Choice
Everything else remaining unchanged,if the demand curve for reserves shifts to the right and the value of borrowed reserves is zero,________.
A) there will be an increase in both the federal funds rate and the quantity of reserves
B) there will be a decrease in both the federal funds rate and the quantity of reserves
C) there will be a decrease in the federal funds rate but no change in the quantity of reserves
D) there will be an increase in the federal funds rate but no change in the quantity of reserves
Correct Answer:
Verified
Correct Answer:
Verified
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