Author Question: If the Fed paid a lower interest rate to banks on their reserves at the Fed, the money supply would ... (Read 124 times)

fasfsadfdsfa · **on:** Jun 30, 2018

If the Fed paid a lower interest rate to banks on their reserves at the Fed, the money supply would tend to rise.
a. True
b. False
Indicate whether the statement is true or false

Question 2

A leftward shift in the money demand function would result from:
a. a decrease in the money supply.
b. a decrease in the price level.
c. an increase in real income.
d. a decrease in the interest rate.
e. an increase in the interest rate