In the Federal Funds Market model,the y-axis shows the ________,while the x-axis shows the ________.

Question

Quizplus · Accepted Answer

The Federal Funds Market model typically has the federal funds rate on the y-axis and the quantity of reserves on the x-axis. This reflects the interest rate that banks charge each other for overnight loans of federal funds, which are the reserves held at the Federal Reserve, in relation to the amount of those reserves available in the banking system.

In the Federal Funds Market Model,the Y-Axis Shows the ________,While