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

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

Answer: C

NAIMMCQ

In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, an open market sale ________ the ________ of reserves, causing the federal funds rate to increase, 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 sale ________ the ________ of reserves, causing the federal funds rate to increase, 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 sale the of reserves, causing the federal funds rate to increase, 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 sale the of reserves, causing the federal funds rate to increase, everything else held constant.