An increase in the quantity of reserves leads to a
A. fall in the federal funds rate.
B. decrease in the price level.
C. reduction in the velocity of circulation.
D. leftward shift in the demand curve for reserves.
Answer:A
An increase in the quantity of reserves leads to a
A. fall in the federal funds rate. B. decrease in the price level. C. reduction in the velocity of circulation. D. leftward shift in the demand curve for reserves.