An increase in the federal funds rate is a signal that the Fed wants a tighter monetary policy.
Answer the following statement true (T) or false (F)
True
A higher federal funds rate is a signal to banks that the Fed wants to increase interest rates and pursue a tighter monetary policy.
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When a Pigouvian tax is imposed, ________
A) the marginal private cost curve shifts upward B) the demand curve shifts rightward C) the marginal social cost curve shifts downward D) the marginal social benefit curve shifts downward
CETA's heavy emphasis on public sector employment was regarded as a success
Indicate whether the statement is true or false
In a partnership
A) each partner's liability is limited to their investment in the company. B) profits are taxed at both the corporate rate and the personal income tax rate. C) upon the death of a partner it may be necessary to sell the business. D) there is a separation of ownership and management like in a corporation.
Ceteris paribus, in the long run, a tax placed on a perfectly competitive industry will
A. be borne entirely by the firm. B. be entirely borne by the consumer. C. increase the price of the good by an amount less than the tax. D. increase the price of the good by an amount equal to the tax.