The demand curve for reserves shifts to the left and the federal funds rate falls when the Fed
A) decreases reserve requirements or does an open market purchase.
B) lowers the discount rate.
C) lowers the discount rate or does an open market purchase.
D) decreases reserves requirements.
E) does an open market sale.

Question

Quizplus · Accepted Answer

The Answer of The demand curve for reserves shifts to the left and the federal funds rate falls when the Fed
A) decreases reserve requirements or does an open market purchase.
B) lowers the discount rate.
C) lowers the discount rate or does an open market purchase.
D) decreases reserves requirements.
E) does an open market sale.

The Demand Curve for Reserves Shifts to the Left and the Federal