When the federal funds rate equals the interest rate paid on excess reserves
A)the supply curve of reserves is vertical.
B)the supply curve of reserves is horizontal.
C)the demand curve for reserves is vertical.
D)the demand curve for reserves is horizontal.

Question

Quizplus · Accepted Answer

The Answer of When the federal funds rate equals the interest rate paid on excess reserves
A)the supply curve of reserves is vertical.
B)the supply curve of reserves is horizontal.
C)the demand curve for reserves is vertical.
D)the demand curve for reserves is horizontal.

When the Federal Funds Rate Equals the Interest Rate Paid