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Refer to the Figure Above

Question 94

Multiple Choice

Refer to the figure above. If the Federal funds market is at equilibrium at point B and the Federal Reserve decides to change the rate by a percentage point in order to reduce the chances of the economy going into recession, the supply of funds curve will have to shift to: A) S<sub>f1</sub> B) S<sub>f2</sub> C) S<sub>f3</sub> D) S<sub>f4</sub> Refer to the figure above. If the Federal funds market is at equilibrium at point B and the Federal Reserve decides to change the rate by a percentage point in order to reduce the chances of the economy going into recession, the supply of funds curve will have to shift to:


A) Sf1
B) Sf2
C) Sf3
D) Sf4

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