When the Fed wants to lower the Federal funds rate, it:
a. Buys bonds from banks and the public
b. Sells bonds to banks and the public
c. Increases the reserve ratio
d. Increases the discount rate
a. Buys bonds from banks and the public
You might also like to view...
The main effect of a decrease in labor demand that arises from a decrease in capital stock is
A) lower real wages. B) shifts in unemployment. C) a need for fewer immigrant workers. D) companies make fewer profits.
Suppose a firm can only vary the quantity of labor hired in the short run. An increase in the cost of capital will
A) increase the firm's marginal cost. B) decrease the firm's marginal cost. C) have no effect on the firm's marginal cost. D) More information is needed to answer the question.
According to the principle of rational choice, if there is diminishing marginal utility:
A. and the price received for supplying a good goes up, you supply less of that good. B. after a certain point, even if the price goes up, you don't supply more of that good. C. and the price received for supplying a good goes up, you supply more of that good. D. the decision producers face about how much to supply is not affected.
Frictional unemployment always exists because
A. recessions are necessary sometimes to keep the economy healthy. B. the government has never instituted full employment policies. C. some workers quit their jobs without having another job already lined up. D. workers are lazy and refuse to accept certain jobs.