Refer to the diagram for the federal funds market. If the Fed supplies $300 billion in reserves, the equilibrium federal funds rate is:
A. 6.0 percent.
B. 5.5 percent.
C. 5.0 percent.
D. undeterminable with the information given.
C. 5.0 percent.
You might also like to view...
In the foreign exchange market, the
A) supply of dollars decreases as the exchange rate increases and the quantity of dollars supplied does not change. B) quantity of dollars supplied increases as the exchange rate decreases and the supply of dollars does not change. C) quantity of dollars supplied increases as the exchange rate increases and the supply of dollars does not change. D) supply of dollars increases as the exchange rate increases and the quantity of dollars supplied does not change. E) both the quantity of dollars supplied and the supply of dollars increases as the exchange rate increases.
Optimal decisions are made
A) if information about prices and marginal utilities is known. B) in the marketplace. C) at the margin. D) when marginal utility is minimized.
National income equals gross domestic product
A) minus the consumption of fixed capital. B) minus government transfer payments. C) plus government transfer payments. D) plus sales taxes.
Ration coupons are typically associated with price floors
Indicate whether the statement is true or false