If the actual federal funds rate is 7 percent and the Fed's target federal funds rate is 8 percent, the Fed is most likely to adopt which of the following policies?
A. A sale of government bonds
B. A reduction in the reserve requirement
C. A purchase of government bonds
D. A more expansionary monetary policy
Answer: A
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Holding the price of a firm's output constant, if the marginal product of labor increases
A) the marginal products of other inputs also increase. B) the marginal revenue product of labor also increases. C) the marginal revenue product of labor may increase or decrease. D) the marginal revenue product of labor decreases.
Suppose the short-run production function is q = L0.5. If the marginal cost of producing the tenth unit is $5, what is the wage per unit of labor?
A) $1 B) $0.5 C) $0.25 D) It cannot be determined without more information.
Suppose the insurance company cannot tell them apart but expects them to be different values and charges them an average premium of $1850 . Who is more likely to buy this insurance?
a. Samantha b. Nadia c. Both of them d. None of them
According to the circular flow diagram, a manufacturer of arms would provide arms in the market for goods and services and receive _____ in return
a. revenue b. scarce resources c. arms d. technological knowhow