If the Federal Reserve increases the spread between the federal funds rate and the discount rate, then the cost of a shortage of reserves _ and the amount banks are willing to lend _

A. increases; decreases
B. decreases; increases
C. increases; increases
D. decreases; decreases

Question

17-06-2024
Business

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If the Federal Reserve increases the spread between the federal funds rate and the discount rate, then the cost of a shortage of reserves _ and the amount banks are willing to lend _

A. increases; decreases
B. decreases; increases
C. increases; increases
D. decreases; decreases

Sagot :

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