Which of the following is true about the equilibrium federal funds rate? A. The equilibrium federal funds rate is constant because of structural forces. B. The Fed can increase the equilibrium federal funds rate by decreasing reserve demand. C. The Fed can increase the equilibrium federal funds rate by decreasing the supply of reserves. D. The equilibrium federal funds rate is determined at the point where money demand exceeds money supply.

C) The Fed can increase the equilibrium federal funds rate by decreasing the supply of reserves.

Explanation:

The Federal fund rate is the interest rate at which the banks use to lend money to each other overnight. It can simply be called the interest rate for interbank reserve loans. It can also be the interest rate which is used to conduct monetary policies.

Here, money demanded is equal to the amount of money supplied. The Fed can change the equilibrum funds rate by decreasing the money supplied to the banks, which in turn, makes the federal fund demand increase and the federal also fund rate increases.

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Step-by-step explanation:

It is given that a number, x, rounded to 2 significant figures is 1300.

It is possible if,

1. The value of x is greater than of equal to 1250 and less than or equal to 1300.

i.e.,     ...(1)

2. The value of x is greater than of equal to 1300 and less than 1350.

i.e.,       ...(2)

On combining (1) and (2), we get

1350 is not included in the error interval for x.​

Interval notation is .

Therefore, the error interval for x is .