If the Federal Reserve decides to increase the money supply:
a) the federal funds rate will rise.
b) the federal funds rate will fall.
c) the federal funds rate will be unaffected.
d) deflation will occur.
Ans: b) the federal funds rate will fall.
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Which of the following is an example of a product that is nonexcludable and rival?
A) a motorcycle B) the court system C) Western lowland gorillas D) a NASCAR event
The additional output produced by adding one more unit of an input is the:
A. marginal product. B. average product. C. total production. D. slope of the marginal product curve.
The intended use of TARP funds was to
A. support the FDIC. B. increase consumers’ disposable income. C. fund “shovel-ready” projects. D. purchase unwanted securities.
Foreign trade enhancements include
A) Instituting quotas on food imports. B) Reducing tariffs on food imports. C) Increasing the value of the dollar. D) None of the above.