In October 2008, the Fed announced that it would begin paying interest on banks required and excess

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In October 2008, the Fed announced that it would begin paying interest on banks’ required and excess reserves. From an opportunity-cost perspective, explain how this may affect the amount of reserves banks are willing to hold.

Would you be surprised if excess reserves in the banking system are, on average, greater after this change than before? Explain.

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Principles Of Macroeconomics The Way We Live

ISBN: 978-1429220200

1st Edition

Authors: Susan Feigenbaum ,R. W. Hafer

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Question Posted: Nov 07, 2024 08:00 AM

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In October 2008, the Fed announced that it would begin paying interest on banks required and excess

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Principles Of Macroeconomics The Way We Live

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