When the Fed decreases the interest rate paid on reserves, it will increase the interest rate.
This are stores of wealth or money that is owned by federal government.
The reserve helps to measure how well an economy is doing.
When the reserve is low the rate of interest paid is high to cover up for further spendings.
Therefore, When the Fed decreases the interest rate paid on reserves, it will increase the interest rate.
Learn more on federal reserve below
https://brainly.com/question/382312
#SPJ11