If the Fed lowers the federal funds rate, which of the following occurs?
A) Investment increases.
B) Consumption expenditure decreases.
C) The price of the dollar on the foreign exchange market increases.
D) Net exports decrease.
E) Government expenditure on goods and services increases.
A
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Refer to the figure above. What is the surplus enjoyed by the firm when it is the sole supplier of the medicine?
A) $30 B) $60 C) $90 D) $180
Depletion of tropical rainforests is an example of
a. a negative externality b. the use of variable technology c. adverse selection d. the use of fixed technology e. a clearly defined property right
The combined effect on the loanable funds market of a new technology that increases the marginal physical product of capital and a shift in consumers' expectation of future prices, now expecting they will be lower than they earlier expected, is a(n)
a. increase in the interest rate b. decrease in the interest rate c. decrease in the quantity demanded and quantity supplied of loanable funds but unclear in what direction the interest rate will change d. increase in the quantity demanded and quantity supplied of loanable funds but unclear in what direction the interest rate will change e. shift in the demand curve to the left and the supply curve of loanable funds to the right
One of the functions of an institution like the Federal Reserve System is to ______.
a. make loans and provide banking services to individuals b. regulate the buying and selling of stocks and bonds c. act as the central government’s primary bank d. manage and review taxpayers’ annual returns