Question 1

Which of the following both increase the federal funds rate?

Answer

An increase in the discount rate and a decrease in the interest rate on reserves

Answer

An increase in the discount rate and an increase in the interest rate on reserves

Answer

A decrease in the discount rate and a decrease in the interest rate on reserves

Answer

A decrease in the discount rate and an increase in the interest rate on reserves

Question 2

Which of the following both increase the federal funds rate?

Answer

An increase in the discount rate and a decrease in the interest rate on reserves

Answer

An increase in the discount rate and an increase in the interest rate on reserves

Answer

A decrease in the discount rate and a decrease in the interest rate on reserves

Answer

A decrease in the discount rate and an increase in the interest rate on reserves