Refer to the diagram for the federal funds market. If the Fed supplies $200 billion in reserves, the equilibrium prime interest rate is:
A. 6.0 percent.
B. 5.5 percent.
C. 5.0 percent.
D. undeterminable with the information given.
D. undeterminable with the information given.
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The owners of the resource ________ are paid ________
A) land; wages B) labor; profit C) capital; rent D) capital; interest E) entrepreneurship; wages
An increase in the quantity of a product supplied is caused by an increase in the price of the product
Indicate whether the statement is true or false
Japan and China can both produce guns and rice. The country with the lowest opportunity cost of guns (in terms of rice) will a. import guns
b. have a comparative advantage in guns. c. have an absolute advantage in guns. d. have a comparative advantage in rice.
When creating market demand curves for privately produced and privately consumed goods, we must
A. add the price paid at each quantity. B. take an average of the price paid at each quantity. C. add the quantity demanded at each price. D. take an average of the quantity demanded at each price.