Question : 41) Everything else held constant, the vertical section of the : 1373789

41) Everything else held constant, the vertical section of the supply curve of reserves is lengthened when the

A) discount rate increases.

B) discount rate decreases.

C) federal funds rate rises.

D) federal funds rate falls.

42) In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, an increase in the reserve requirement ________ the demand for reserves, ________ the federal funds rate, everything else held constant.

A) decreases; lowering

B) increases; lowering

C) increases; raising

D) decreases; raising

43) In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, a ________ in the reserve requirement ________ the demand for reserves, raising the federal funds interest rate, everything else held constant.

A) rise; decreases

B) rise; increases

C) decline; increases

D) decline; decreases

44) In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, a ________ in the reserve requirement increases the demand for reserves, ________ the federal funds interest rate, everything else held constant.

A) rise; lowering

B) decline; raising

C) decline; lowering

D) rise; raising

45) In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, an increase in the reserve requirement ________ the demand of reserves and causes the federal funds interest rate to ________, everything else held constant.

A) decreases; fall

B) increases; fall

C) increases; rise

D) decreases; rise

46) In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, an increase in the reserve requirement ________ the ________ for reserves and causes the federal funds interest rate to rise, everything else held constant.

A) decreases; demand

B) increases; demand

C) increases; supply

D) decreases; supply

47) In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, a ________ in the reserve requirement ________ the demand for reserves, lowering the federal funds interest rate, everything else held constant.

A) rise; decreases

B) rise; increases

C) decline; increases

D) decline; decreases

48) In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, a ________ in the reserve requirement decreases the demand for reserves, ________ the federal funds interest rate, everything else held constant.

A) rise; lowering

B) decline; raising

C) decline; lowering

D) rise; raising

49) In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, a decline in the reserve requirement ________ the ________ curve of reserves and causes the federal funds interest rate to fall, everything else held constant.

A) decreases; demand

B) increases; demand

C) increases; supply

D) decreases; supply

50) In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, a decline in the reserve requirement ________ the demand of reserves, ________ the federal funds rate, everything else held constant.

A) decreases; lowering

B) increases; lowering

C) increases; raising

D) decreases; raising