If the Fed wanted to stimulate the economy to limit the effects of a recessionary gap, then it should ________ the federal funds rate in order to ________ the real interest rate and thereby ________ investment.
Fill in the blank(s) with the appropriate word(s).
lower; lower; increase
You might also like to view...
If a household has a single woman and three kids, has a standard deduction of $6,300, has itemized deductions of $5,650, and personal exemptions of $12,000 (3*$4,000), then the first ________ of income is federal income tax free.
A. $28,950 B. $17,650 C. $11,950 D. $18,300
In a court decision in June 2001, the Federal District Count of Appeals in Washington, D.C. found that Microsoft had violated the
A) Clayton Act. B) Robinson-Patman Act. C) Sherman Act. D) Celler-Kefauver Act.
For a bank to have lending power, its required reserves must:
a. be smaller than its legal reserves. b. exceed its legal reserves. c. be smaller than its excess reserves. d. exceed its excess reserves. e. exceed its vault cash.
A chewing gum manufacturer adds a jalapeño-flavored bubble gum to its product mix. This is an example of horizontal differentiation.
Answer the following statement true (T) or false (F)