The higher the opportunity cost of borrowing, the higher the ...

[jerry coleman]

The higher the opportunity cost of borrowing, the higher the amount of investment, other things constant.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

When the Fed buys U.S. government securities from a member bank, that bank's excess reserves, required reserves, and total reserves all increase.
 a. True
  b. False
  Indicate whether the statement is true or false

[zacnyjessica]

Answer to Question 1

False

Answer to Question 2

False