When the Federal Reserve wants to slow inflation, it
A) lowers the federal funds rate.
B) increases taxes on interest income.
C) raises the federal funds rate target.
D) increases aggregate income, output, and employment.
E) cuts the federal funds rate target aggressively to almost zero.
C
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________ will lead to an increase in the gross domestic product of a country, all other variables remaining unchanged
A) An increase in expenditure incurred by the government B) A fall in the expenditure on consumption C) An increase in imports D) A fall in the expenditure on investment goods
U.S. currency ________
A) is less efficient than barter B) includes tobacco C) is the sum of M1 and M2 D) is composed of the bills and coins held by individual and businesses
The U.S. had the largest trade deficit in 2009 with which of the following countries?
a. Canada b. Japan c. Mexico d. China
The creation of savings plans such as savings deposits and money market mutual accounts that allow easy transfer of funds between interest-earning assets and checkable deposits tends to
A) lower the cost of holding money. B) reduce the demand for money. C) increase the demand for money. D) increase the risk of holding money.