The discount rate is
a. set in the money market.
b. set by each member bank.
c. set by the Federal Reserve Bank.
d. the same as the federal funds rate.
c. set by the Federal Reserve Bank.
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Which of the following is true with respect to the price elasticity of demand?
a. The coefficient of price elasticity of demand will change with changes in the units of measurement (for instance, going from pounds to ounces). b. Elasticity of demand is equal to the slope of the demand curve. c. Elasticity measures the sensitivity of total expenditure to a change in price of a good. d. Elasticity will tend to be greater for a relatively expensive product than for a cheaper one. e. A coefficient of 1 means that the percentage change in total expenditure is equivalent to the percentage change in price.
In the orange market, what impact would an increase in the price of oil that orange growers burn to keep oranges from freezing in the winter have on the market?
a. It would shift the supply curve to the right. b. It would shift the supply curve to the left. c. It would shift the demand curve to the left. d. It would shift the demand curve to the right.
Some economists argue that the Fed set its federal funds rate target "too _________" in the early 2000s, which was one of the contributing factors which led to ____________ mortgage interest rates and a(n) ___________ housing prices
A) low; low; increase B) low; low; decline C) high; high; decline D) high; high; increase
According to Keynes, which of the following should the government do when the economy overheats?
A. Practice laissez faire policies. B. Raise taxes. C. Employ more people. D. Increase spending.