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Which of the following is likely to happen to the demand curve for reserves if the federal funds rate​ increases, everything else remaining​ constant?
A. There will be an upward movement along the demand curve for reserves. B. The demand curve for reserves will shift to the right. C. There will be a downward movement along the demand curve for reserves. D. The demand curve for reserves will shift to the left.

Respuesta :

In case of demand curve There will be an upward movement along the demand curve for reserves.

What do you mean by Demand curve?

  • The relationship between the cost of an item or service and the quantity demanded over a specific time period is represented graphically by the demand curve.
  • The price and quantity demanded are often represented with the price on the left vertical axis and the horizontal axis, respectively.
  • A demand curve typically has a downward sloping shape, as previously mentioned. The demand curve for the majority of items, if not all of them, follows this rule. Rare instances of products with upward-sloping demand curves may exist. A Giffen good is one with an increasing slope on the demand curve.

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