Reserves currently are so abundant that:
A. the IOER rate is ineffective.
B. the Fed cannot affect the federal funds rate.
C. the federal funds rate is not easily manipulated with open market operations.
D. the Fed prefers to target the discount rate.
Answer: C
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A firm's horizontal dimension refers to
A) its size in its primary market. B) its size in all markets in which is competes. C) the level of supply chain integration the firm undertakes. D) the number of stages in the production process that are upstream from the stages the firm undertakes.
In 1932, Walter Cannon of the Harvard Medical School coined the phrase ________________ to refer to the alerted condition of the body as it prepares for physical battle or escape
a. Terror or fright b. Push or pull c. Punch or race d. Flight or fight syndrome
Which of the following changes in disposable income would lead to the smallest increase in consumption?
a. a $20,000 increase in disposable income, if MPC equals 0.5 b. a $12,000 increase in disposable income, if MPC equals 0.75 c. a $15,000 increase in disposable income, if MPC equals 0.6 d. a $30,000 increase in disposable income, if MPC equals 0.25
Refer to the graph which shows the supply and demand for money where Dm1, Dm2, and Dm3 represent different demands for money and Sm1, Sm2, and Sm3 represent different levels of the money supply. The initial equilibrium point is A. What will be the new equilibrium point following a decrease in the transactions demand for money?
A. B
B. E
C. F
D. I