If the federal funds rate is above the equilibrium federal funds rate, then the supply of reserves would be __________ than the demand for reserves and the banks would try to __________ reserves causing the federal funds rate to fall
A) greater than; lend
B) greater than; borrow
C) less than; lend
D) less than; borrow
A
You might also like to view...
The purpose of the Labor Side Agreement under NAFTA is to:
a. increase standards in Mexico only. b. increase standards throughout NAFTA. c. enforce existing standards throughout NAFTA. d. renegotiate standards.
Suppose Thailand grows at a rate of 8 percent, Malaysia grows at a rate of 6 percent, and both countries have the same initial per capita output level. Using the rule of 72, it follows that in 36 years Thailand's per capita output will be:
A. 33 percent larger than Malaysia's per capita output. B. 100 percent larger than Malaysia's per capita output. C. 25 percent larger than Malaysia's per capita output. D. 50 percent larger than Malaysia's per capita output.
The primary copper industry in the United States would be an example of a:
A. homogeneous oligopoly. B. differentiated oligopoly. C. noncollusive oligopoly. D. duopoly.
The amount of calendar time associated with the long run
A. varies by industry. B. is less than five years. C. is between one and five years. D. is greater than one year.