If the Fed increases ior enough, such that it will raise the intersection point with the vertical portion of reservesupply, th

Question

IRISSAK [1]

2 years ago

15

If the Fed increases ior enough, such that it will raise the intersection point with the vertical portion of reservesupply, th

en the equilibrium fed funds rate will:_________

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1 answer:

Liono4ka [1.6K] · Answer 1 · 2022-07-28T15:57:00+03:00

Answer: Increase

Explanation:

Based on the above scenario given in the question whereby when the Fed increases ior enough, such that it will raise the intersection point with the vertical portion of reservesupply, then the equilibrium fed funds rate will increase.

There'll be a rise in the equilibrium fed funds since the intersection point has been raised.

If the Fed increases ​ior enough, such that it will raise the intersection point with the vertical portion of reserve​supply, th

If the Fed increases ior enough, such that it will raise the intersection point with the vertical portion of reservesupply, th