If banks are short of reserves, the Fed funds rate will:
A. stay the same.
B. increase.
C. decrease.
D. rise or fall; it cannot be determined with the information given.
Answer: B
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An increased federal budget deficit resulting from a recession can actually help stabilize an economy, because corporate profits tend to fall in a recession which, in turn, results in ________ corporate taxes and ________
A) lower; increases in the price level B) lower; fewer spending cuts for businesses C) higher; larger profits for businesses D) higher; more tax revenue for the government
Sale of U.S. government bonds to foreigners is an example of direct foreign investment in the United States
Indicate whether the statement is true or false
If I trade a ginger snap for a chocolate chip cookie, I am engaging in
a. barter b. comparative advantage c. absolute advantage d. privatization e. division of labor
An example of a public good is:
A. national defense. B. libraries. C. timber. D. natural gas.