The Fed's initial step in pursuing restrictive monetary policy using the federal funds rate is to:
A. announce a higher target.
B. sell bonds to banks and the public.
C. raise the discount rate.
D. raise the prime interest rate.
A. announce a higher target.
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________ monetary policy causes the real interest rate to ________
A) Expansionary; remain unchanged B) Contractionary; remain unchanged C) Expansionary; rise D) Contractionary; rise
A firm's marginal and average costs may differ in the long and short run because:
A. in the short run all inputs are fixed. B. in the long run all inputs are fixed. C. in the short run all inputs are variable. D. in the long run all inputs are variable.
A Japanese recession will be counteracted by an appreciation of the Japanese yen
a. True b. False Indicate whether the statement is true or false
Which of the following is not held constant in a demand schedule?
a. income b. tastes c. price d. expectations