If the target federal funds rate reaches the lower bound the FOMC:
A. must stop purchasing securities since they cannot lower nominal rates below the lower bound.
B. would likely raise the discount rate.
C. would likely raise the required reserve rate.
D. would likely shift their focus to purchasing longer-term securities.
Answer: D
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Welfare data show that in the United States
a. most welfare recipients receive benefits only for a short time. b. welfare encourages young women to have children. c. children brought up on welfare tend to remain on welfare as adults. d. having poor parents does not increase the chances of a child's being on welfare as an adult. e. children of poor parents have a 50 percent chance of being middle-income adults.
Each of the following were created under the New Deal EXCEPT
A. Social Security. B. the Federal Deposit Insurance Corporation (FDIC). C. the Securities and Exchange Commission (SEC). D. food stamps.
The American Federation of Labor was founded on the principles of racial and worker solidarity
Indicate whether the statement is true or false
When decision rights are decentralized, typically
a. decisions are being moved to those with less of the relevant information b. decisions are being moved from those with stronger incentives to make good decisions c. decisions are being moved from those with more of the relevant information d. decisions are being moved from those with weaker incentives to make good decisions