The reserves supply schedule has a positive slope because
A) the Fed lowers the discount rate as interest rates rise.
B) the Fed makes more money available at higher interest rates.
C) as interest rates rise, banks will find loans more profitable.
D) as interest rates rise, people will demand more loans.
Correct Answer:
Verified
Q126: Assume the required reserve ratio is 10
Q127: The Fed cannot predict the effects of
Q128: If the Fed buys $5 million in
Q129: The reserve demand schedule is drawn on
Q130: If the Fed sells $5 million in
Q132: Banks will hold additional excess reserves when
A)loans
Q133: If the FOMC orders the sale of
Q134: When the Fed sells a government security
Q135: If the Fed buys a U.S.Treasury bill
Q136: If the FOMC orders a purchase of
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