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 supply of reserves causing the federal funds rate to ________, 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 supply of reserves causing the federal funds rate to , 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 supply of reserves causing the federal funds rate to , everything else held constant.

A) decreases; decrease
B) increases; decrease
C) increases; increase
D) decreases; increase

Answer: D

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 supply of reserves causing the federal funds rate to ________, 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 supply of reserves causing the federal funds rate to ________, 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 supply of reserves causing the federal funds rate to , 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 supply of reserves causing the federal funds rate to , everything else held constant.