The demand curve for federal funds is ________.
A. downward-sloping, because higher interest rates encourage commercial banks to borrow federal funds
B. upward-sloping, because higher interest rates encourage commercial banks to lend federal funds
C. downward-sloping, because higher interest rates discourage commercial banks from borrowing federal funds, but lower rates encourage borrowing
D. upward-sloping, because higher interest rates discourage commercial banks from lending federal funds
Answer: C
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Indicate whether the statement is true or false
Which of the following would have the biggest payoff?
A) increasing the Okun Gap B) restoring real GDP growth to its 1960s growth rate C) making the Okun Gap equal the Lucas Wedge D) eliminating the Okun Gap E) increasing the Lucas Wedge
Refer to Table 26-2. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if the Federal Reserve does not use monetary policy
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A market society will always protect the natural environment
a. True b. False Indicate whether the statement is true or false