Question

If the Fed increases ​ior enough, such that it will raise the intersection point with the vertical portion of reserve​supply, then the equilibrium fed funds rate will:_________

Answer 1

Answer: Increase

Step-by-step explanation:

Based on the above scenario given in the question whereby when the Fed increases ​ior enough, such that it will raise the intersection point with the vertical portion of reserve​supply, then the equilibrium fed funds rate will increase.

There'll be a rise in the equilibrium fed funds since the intersection point has been raised.