The federal funds rate is the interest rate that

A) the Fed charges to banks that borrow from it. B) banks charge the Fed for using their reserves.
C) banks charge each other for borrowed money. D) the Fed pays on bank reserves.


C

Economics

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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________.  

A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A

Economics

The perfectly competitive seller's short-run supply curve is

A) its entire marginal cost curve. B) its marginal revenue curve. C) the part of its marginal cost curve above the average variable cost curve. D) the part of its marginal cost curve above the average total cost curve.

Economics

Considering the concept of cross-price elasticity, if two goods are substitutes:

A. an increase in the price of one causes a decrease in the demand for the other. B. a decrease in the price of one causes an increase in the demand of the other. C. an increase in the price of one causes an increase in the demand for the other. D. the cross-price elasticity is negative.

Economics

The purchase of a new scanner by a computer graphics business is included in which expenditure category of GDP?

a. consumption b. investment c. government purchases d. net exports

Economics