Steps in the transmission of monetary policy are
A) Congress increases the budget deficit, which increases the money supply, which increases aggregate supply.
B) Congress increases the money supply, which lowers the interest rate, and leads to an increase in aggregate demand.
C) the Federal Reserve lowers the federal funds rate, which lowers the real interest rate, and leads to an increase in aggregate demand.
D) the Federal Reserve increases government expenditures on goods and services, leading to an increase in aggregate demand.
E) Congress increases government expenditures on goods and services, leading to an increase in aggregate demand.
C
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A tax system in which the average and marginal tax rates are the same for every level of taxable income and every change in income is an example of
A) regressive taxation. B) proportional taxation. C) progressive taxation. D) premium taxation.
Use the above table. The MFC of the 3rd worker is
A) $5. B) $30. C) $20. D) $6.7.
Refer to the accompanying figure. Moving from point C to point B, the opportunity cost of 25 more salads is:
A. 5 pizzas. B. 30 pizzas. C. 10 pizzas. D. 15 pizzas.
To achieve its target when the federal funds rate is above the target range, the Fed should:
A. buy foreign currency. B. follow expansionary policy. C. do nothing. D. follow contractionary policy.