The Federal Reserve influences the level of interest rates in the short run by changing the:
A. demand for money through open market operations.
B. demand for money through changes in reserve requirements.
C. supply of money through open market operations.
D. supply of money through changes in stock market operations.
Answer: C
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After 2009, the price of tablets fell each year and manufacturers of tablets produced and sold more tablets each year. This result is because the
A) "law of supply" does not apply to companies in the "high-tech" sector of the economy. B) "law of demand" does not apply to customers in the "high-tech" sector of the economy. C) supply curve of tablets shifted rightward. D) demand curve for tablets shifted leftward.
Billy is considering the purchase of a rental house. The house costs $240,000 and it will generate annual revenues of $15,000 and annual expenses of $3,000
Nevertheless, Billy will need to borrow $240,000 at an interest rate of 7% per year in case he decides to make this investment. Should Billy purchase this house? A) No, he will lose money. B) Yes, his profits will be zero. C) No, his profits will be positive but close to zero. D) Yes, he will profit from this investment.
Oligopolies can be characterized as a strategic game among rival companies.
Answer the following statement true (T) or false (F)
All of the following explain the growth in output per worker hour during the 20th century except
A. the quality of capital improved during that period. B. the quality of labor improved during that period. C. the worker-capital ratio decreased during that period. D. the quantity of labor increased during that period.