NAIMMCQ Economics In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, an open market purchase ________ the ________ of reserves which causes the federal funds rate to fall, everything else held constant.

In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, an open market purchase the of reserves which causes the federal funds rate to fall, everything else held constant.

Economics

In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, an open market purchase the of reserves which causes the federal funds rate to fall, everything else held constant.

A) increases; supply
B) increases; demand
C) decreases; supply
D) decreases; demand

Answer: A

NAIMMCQ

In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, an open market purchase ________ the ________ of reserves which causes the federal funds rate to fall, everything else held constant.

In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, an open market purchase ________ the ________ of reserves which causes the federal funds rate to fall, everything else held constant.

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In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, an open market purchase the of reserves which causes the federal funds rate to fall, everything else held constant.

In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, an open market purchase the of reserves which causes the federal funds rate to fall, everything else held constant.