By raising or lowering the _______, the Fed changes the cost of money for banks, which impacts the incentive to borrow reserves.A. Reserve ratio B. Discount rate C. Money multiplier D. Yield
A. Reserve ratio
B. Discount rate
C. Money multiplier
D. Yield
B. Discount rate
You might also like to view...
Given the market data for good X in the above table, an equilibrium quantity is established at
A) 90 units. B) 60 units. C) 30 units. D) 120 units.
Discuss the major determinants of net exports
Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
Suppose people become so convinced that interest rates cannot fall further that they hold money rather than bonds. This situation is
A. known as a liquidity trap B. shown by making the aggregate demand curve steeper C. shown as a leftward shift in the investment demand D. known as crowding out