Within the market for reserves, an increase in the quantity of reserves results in a
A. rise in the equilibrium federal funds rate.
B. fall in the equilibrium federal funds rate.
C. rise in the equilibrium real wage rate.
D. fall in the equilibrium money wage rate.
Answer:B
Within the market for reserves, an increase in the quantity of reserves results in a
A. rise in the equilibrium federal funds rate. B. fall in the equilibrium federal funds rate. C. rise in the equilibrium real wage rate. D. fall in the equilibrium money wage rate.