Suppose, at a given federal funds rate, there is an excess supply of reserves in the federal funds market
If the Fed wants the federal funds rate to stay at that level, then it should undertake an open market ________ of bonds, everything else held constant. If the Fed does nothing, however, the federal funds rate will ________. A) sale; increase
B) purchase; increase
C) sale; decrease
D) purchase; decrease
C
You might also like to view...
Refer to the scenario above. What is Wendy's opportunity cost of producing one greeting card?
A) 0.25 earrings B) 0.5 earrings C) 1 earring D) 2 earrings
Which of the following will likely increase the demand for downtown parking in a large city?
A) Improved bus service to the downtown area B) Lower downtown parking fees C) More downtown parking lots D) More freeways leading to the downtown area E) Much higher gasoline prices
A university conducts a survey of students, which shows that a 10 percent tuition hike would lead to a 7 percent decrease in the enrollment
If the university wants to increase its total revenue, it should ________ tuition because the demand for education at this university is ________. A) raise; elastic B) not raise; elastic C) raise; inelastic D) not raise; inelastic
Refer to Figure 8.1. Which graph best represents a variable cost function?
A. A
B. B
C. C
D. D