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Consider the market for​ reserves, and suppose that the supply curve currently intersects the demand curve in the​ downw

Posted: Thu May 19, 2022 8:07 am
by answerhappygod
Consider the market for​ reserves, and suppose that the
supply curve currently intersects the demand curve in
the​ downward-sloping section of the demand curve. What
happens to the federal funds rate if the Fed increases open
market​ purchases, and the reserve requirement on banks is
reduced at the same​ time?
A.
The federal funds rate increases
B.
The effect cannot be determined without additional
information
C.
The federal funds rate does not change
D.
The federal funds rate falls