While a television news reporter might state that "Today the Fed raised the federal funds rate from 1 percent to 1.25 percent," a more precise account of the Fed's action would be as follows:
a. "Today the Fed told its bond traders to conduct open-market operations in such a way that the equilibrium federal funds rate would increase to 1.25 percent.".
b. "Today the Fed raised the discount rate by a quarter of a percentage point, and this action will force the federal funds rate to rise by the same amount.".
c. "Today the Fed took steps to increase the money supply by an amount that is sufficient to increase the federal funds rate to 1.25 percent.".
d. "Today the Fed took a step toward expanding aggregate demand, and this was done by raising the federal funds rate to 1.25 percent.".
a
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According to the Bureau of Labor Statistics, most U.S. adults are either
A) employed or unemployed. B) employed or not in the labor force. C) unemployed or not in the labor force. D) unemployed or underemployed.
The income transferred by the government from a citizen who is earning income to another citizen is referred to as:
a. fiscal spending. b. transfer payment. c. budgetary allowance. d. taxation. e. internal debt.
The number of workers employed will not change as a result of an increase in productivity when which of the following occurs?
A) The AS curve shifts downward. B) Output growth exceeds productivity growth. C) Productivity growth is equal to output growth. D) The AD curve shifts to the right. E) none of the above
After getting a raise at work, Jennie now regularly buys steak instead of hamburger. Based on this behavior, we can assume:
A. steak is a normal good, and hamburger is an inferior good for Jennie. B. steak and hamburger are - normal goods for Jennie. C. steak is an inferior good, and hamburger is a normal good for Jennie. D. steak and hamburger are complementary goods for Jennie.