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 supply of reserves and causes the federal funds interest 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 purchase the supply of reserves and causes the federal funds interest 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 purchase the supply of reserves and causes the federal funds interest rate to , everything else held constant.

A) decreases; fall
B) increases; fall
C) increases; rise
D) decreases; rise

Answer: B

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 supply of reserves and causes the federal funds interest 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 purchase ________ the supply of reserves and causes the federal funds interest 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 purchase the supply of reserves and causes the federal funds interest 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 purchase the supply of reserves and causes the federal funds interest rate to , everything else held constant.