When the Federal Reserve ________
A) drains liquidity, the federal funds rate falls
B) drains liquidity, real interest rates fall
C) provides more liquidity, the federal funds rate falls
D) all of the above
E) none of the above
C
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By better utilizing existing resources, an economy can produce at a point outside of its current production possibilities frontier
a. True b. False
A defined contribution pension program is one in which
A. those in the plan, as well as their employer, contribute to an account according to a formula, and the investment of that account is under the control of the employee. B. the plan defines eligibility for retirement and benefits according to a set of rules and a formula. C. everyone gets the same amount, regardless of how much they work. D. benefits are untaxed.
If the Fed sells a T-bill to a commercial bank, how will this affect the money supply?
A. It will increase the money supply. B. It will increase bank reserves. C. It will decrease the money supply. D. It will have no effect on the money supply.
A monopoly's short-run supply curve is upward-sloping because of diminishing marginal returns.
a. true b. false