The federal funds rate is the interest rate that
a. banks charge one another for loans.
b. banks charge the Fed for loans.
c. the Fed charges banks for loans.
d. the Fed charges Congress for loans.
a
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A 10 percent increase in the quantity of spinach demanded results from a 20 percent decline in its price. The price elasticity of demand for spinach is
A) 0.5. B) 2.0. C) 10.0. D) 20.0.
How do firms in monopolistic competition compete?
What will be an ideal response?
If expected inflation increases, the short-run Phillips curve will shift to the left so that inflation will be higher at any given unemployment rate
a. True b. False Indicate whether the statement is true or false
. We saw in Chapter 18 that many central banks have turned to a policy framework of inflation targeting. Discuss if this would be effective in a country experiencing deflation.
What will be an ideal response?