If the Fed uses the federal funds rate as an interest rate target,an increase in the demand for reserves will result in a(n)________ in ________.
A) increase; nonborrowed reserves
B) decrease; nonborrowed reserves
C) increase; the federal funds interest rate
D) decrease; the federal funds interest rate

Question

Quizplus · Accepted Answer

The Answer of If the Fed uses the federal funds rate as an interest rate target,an increase in the demand for reserves will result in a(n)________ in ________.
A) increase; nonborrowed reserves
B) decrease; nonborrowed reserves
C) increase; the federal funds interest rate
D) decrease; the federal funds interest rate

If the Fed Uses the Federal Funds Rate as an Interest