When the FOMC raises the federal funds rate, almost immediately ________, and a few weeks later the ________
A) short-term interest rates fall; quantity of money and supply of loanable funds decrease
B) long-term interest rates rise; quantity of money and supply of loanable funds increase
C) long-term interest rates rise; quantity of money and supply of loanable funds decrease
D) short-term interest rates rise; quantity of money and supply of loanable funds decrease
E) short-term interest rates fall; quantity of money and supply of loanable funds increase
D
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An emission charge
A. Increases private marginal cost and reduces output. B. Increases private marginal cost and increases output. C. Reduces private marginal cost and reduces output. D. Reduces private marginal cost and increases output.
The long-established trend toward increasing mandatory federal spending was interrupted by the
A. retirement of aging baby boomers. B. new lunar landing mission. C. Obama Stimulus Plan of 2009. D. Medicare prescription drug plan.
Which of the following statements is correct?
A. The U.S. population has increased more rapidly than real GDP in recent decades. B. Improved education and training of labor is the most important source of U.S. productivity growth. C. The average American factory worker has about 16 years of formal education. D. The amount of real capital used per worker has increased historically in the United States.
MegaCable and Acme are competing for an exclusive contract to provide the city of Dustin with cable television for the next year. The firm that wins the contract will earn an economic profit of $5 million. The contact will be awarded to the firm that spends the most on lobbying. If both firms spend the same amount on lobbying, then the winner will be determined by a coin flip, so each will have a 50 percent chance of winning. Suppose MegaCable spends $2 on lobbying, and Acme spends $1 on lobbying. In this case, MegaCable's economic profit net of its lobbying costs will be ________, and Acme's economic profit net of its lobbying costs will be ________.
A. $5 million; -$1 B. $4,999,998; -$1 C. 0; $5 million D. $2.5 million; $2.5 million