If the Fed Uses Nonborrowed Reserves,a Reserve Aggregate,as a Target,an

Multiple Choice

If the Fed uses nonborrowed reserves,a reserve aggregate,as a target,an increase in the demand for reserves will result in a(n) ________ in ________.

A) increase; nonborrowed reserves
B) decrease; nonborrowed reserves
C) increase; the federal funds interest rate
D) decrease; the federal funds interest rate