If the Fed lowers its target for the federal funds rate, this indicates that
A) the Fed is pursuing an expansionary monetary policy.
B) the Fed is pursuing a contractionary monetary policy.
C) the Fed is attempting to combat inflation.
D) the Fed is concerned that the growth in aggregate demand will exceed potential GDP.
Answer: A
You might also like to view...
The price-consumption curve: a. connects the various combinations of two goods as a consumer's income changes
b. connects the various combinations of two goods as the relative price of one good changes. c. shows the quantity of a good consumed as a function on income. d. All of the above are correct statements.
An example of an oligopoly is: a. the restaurant industry. b. the wheat market
c. the cigarette industry. d. the beef industry.
The value of a real option varies with all of the following, EXCEPT:
a. the range of outcomes. b. the rate of interest. c. the rate of unemployment. d. the delay in resolving uncertainty.
The beneficiaries of the minimum wage are confined to those in poverty
a. True b. False