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RideAnS [48]
3 years ago
13

If the Fed raised the reserve requirement, the demand for reserves would

Business
1 answer:
Vladimir79 [104]3 years ago
8 0

Answer:

b. increase, so the federal funds rate would rise.  

Explanation:

When reserve requirement is raised then more money is to be kept in reserves. it causes in the increase in the demand of reserves. Further, the increase in demand of reserves pushes the federal fund rate on a higher side and it also rises.

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Assume that Clampett, Incorporated, has $200,000 of sales, $150,000 of cost of goods sold, $60,000 of interest income, and $40,0
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3 years ago
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