Reserve targets and federal funds targets are compatible when the Federal Reserve wants to
A) lower interest rates and expand reserves.
B) raise interest rates and the money supply.
C) raise interest rates and reserves.
D) contract interest rates and reserves.
A
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If we take into account transfer payments (TR) when we derive the saving and investment relationship, the saving and investment equation becomes
A) S = I + NFI + TR. B) S + TR = I + NFI. C) S = I + NFI. D) S = I + NX - TR.
For a corporation, issuing bonds is riskier than issuing stock.
Answer the following statement true (T) or false (F)
If an economy is operating on its production possibilities curve, it is:
A) efficient and fully employed. B) fully employed but not necessarily efficient. C) efficiently producing but not necessarily fully employed. D) inevitably going to grow in the future.
The two economists associated with the development of the theory of monopolistic competition were
A. Carl Menger and Eugen Von Bohm-Bawerk. B. John Neville Keynes and John Maynard Keynes. C. David Hume and Adam Smith. D. Joan Robinson and Edward Chamberlin.