The federal funds rate is the interest rate charged by:
a. banks for loans to other banks.
b. the Fed for overnight loans.
c. the Fed for borrowed reserves.
d. the federal government on loans to member banks.
a
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It is possible for the U.S. to gain from trade with Germany even if it takes U.S. workers fewer hours to produce every good than it takes German workers
a. True b. False Indicate whether the statement is true or false
The system of measurement for expressing macroeconomic data is called
A. national income accounting. B. balance of payment accounting. C. generally accepted accounting principles. D. double entry bookkeeping.
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
In the early 1950s, economist William Baumol demonstrated that a lower interest rate ________ the demand for money in a model without bond speculation ________ a "broker's fee" for conversions between money and bonds
A) raises, and without B) raises, but with C) lowers, and without D) lowers, but with E) does not affect, and without