The federal funds rate is a better target for the Fed when
A) the link between reserves and spending is strong.
B) there is a lot of variation in the demand for reserves that isn't related to changes in spending.
C) changes in interest rates stabilize the economy.
D) bank reserves are very stable.
B
You might also like to view...
The monthly mortgage payments made by a homeowner are
A) always sunk costs because the costs of constructing the house lie entirely in the past. B) marginal costs if the house is new but sunk costs if it was purchased from a previous owner. C) marginal costs of continuing to own and occupy the house. D) not marginal costs because the house will continue to exist whether or not the payments are made. E) sunk costs only if all the bills for earlier construction work have been fully paid.
Currency held by the nonbanking public is a medium of exchange
a. True b. False Indicate whether the statement is true or false
The committee of the National Bureau of Economic Research that determines when a recession in the U.S begins and ends looks at
a. employment, industrial production, sales, and personal income. b. real GDP. c. employment and sales. d. employment. e. sales and industrial production.
In developing countries, the highest returns are from investing in:
A. transportation systems. B. sanitation systems. C. education. D. defense.