Question: Everything else held constant, in the market for reserves, when the federal funds rate is 2%, lowering the interest rate paid on excess reserves rate

Everything else held constant, in the market for reserves, when the federal funds rate is 2%, lowering the interest rate paid on excess reserves rate from 2% to 0% raises the federal funds rate. has an indeterminate effect on the federal funds rate. has no effect on the federal funds rate. lowers the federal funds rate?

a) raises fed fund rate

b) has no effect

c) lowers fed fund rate

d) has an indeterminate effect on the federal funds rate.

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