Over the past 40 years, the most frequent target for the Fed's monetary policy has been the:
a. prime interest rate
b. federal funds rate.
c. M1 money supply.
d. M2 money supply.
e. required reserve ratio.
b
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Refer to the above figure. The figure represents the consumption function for a consumer. Point D represents
A) autonomous consumption. B) saving. C) dissaving. D) zero saving.
Along a consumer's demand curve, price reflects
a. the costs of production b. the dollar value of the total utility from the good c. the dollar value of the marginal utility of each additional unit of the good d. the maximum quantity that could be purchased, given income e. non-rational decision making
Despite the warning on a package of cigarettes about the potential health hazards of smoking, a man lights up a cigarette. An economist would conclude that: a. in the man's judgment, the expected marginal cost of smoking the cigarette outweighs the expected marginal benefit. b. the man is behaving irrationally
c. the smoker is unconcerned about his future health. d. in the man's judgment, the expected marginal benefit of smoking the cigarette outweighs the expected marginal cost.
What is the purpose of the Federal Deposit Insurance Corporation (FDIC)?
(A) To make sure that banks charge a fair amount of interest on loans. (B) To make sure that banks do not fail. (C) To make sure that customers do not lose money if a bank fails. (D) To make sure that the government has enough gold to cover its expenses.