In the short run, to decrease the interest rate, the Federal Reserve ________ the quantity of money by ________ government securities
A) decreases; buying
B) increases; selling
C) decreases; selling
D) increases; buying
E) None of the above answers is correct because in the short run, the Federal Reserve cannot change the interest rate.
D
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Suppose the real interest rate increases from 4 percent to 6 percent. As a result,
A) governments decrease their demand for loanable funds. B) firms increase their demand for loanable funds. C) governments increase the supply of loanable funds. D) firms decrease the quantity demanded of loanable funds. E) governments decrease the quantity supplied of loanable funds.
Ice Cream ConesTotal Utility150 280 395 495 Using Table 5-3, graph the marginal utility curve.
What will be an ideal response?
Teddy has preferences given by the utility function U(K,L) = 2L + K where K = pounds of Kale per month and L = pounds of lettuce per month
What is Teddy's Marginal Utility of Kale? What is Teddy's Marginal Utility from Lettuce? If Kale is on the horizontal axis, what is Teddy's marginal Rate of Substitution?
Factors such as _______ shocks and changes in inflationary expectations cause the Phillips curve to shift.
a. policy b. supply c. demand d. trade