The federal funds rate is the rate that the Fed controls most closely through
A. its open market operations.
B. printing money.
C. setting the reserve requirement.
D. setting margin requirements.
Answer: A
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What is measured on the horizontal axis of the aggregate demand/aggregate supply model?
A) real wealth B) real Gross Domestic Product (GDP) C) prices D) nominal income
Because consumers who have insurance provided by their employers usually only pay a deductible for a visit to the doctor's office
A) they demand a larger quantity of health care services than they would if they paid a price that better represented the true cost of providing the service. B) the insurance companies provide a larger quantity of health care services than they would if the consumer paid a price that better represented the true cost of providing the service. C) the doctors supply a smaller quantity of health care services than they would if the consumer paid a price that better represented the true cost of providing the service. D) they demand a smaller quantity of health care services than they would if they paid a price that better represented the true cost of providing the service.
One reason for the success that firms have in getting the government to erect barriers to foreign competition is that jobs lost to foreign competition are easy to identify but jobs created by foreign trade are often hard to identify
Which of the following is a second reason? A) Firms that benefit from trade barriers have more money to lobby government officials to support the barriers than do firms that are harmed by trade barriers. B) The costs that tariffs and quotas impose on consumers are large in total but relatively small per person. C) The benefits from free trade are less than the costs. D) People who benefit from foreign trade tend not to vote in elections; people who are harmed by foreign trade are much more likely to vote.
Managers need all of the following information to determine if the firm should make or buy an input except which one?
A) the salvage rate of the equipment to make the input B) the quantity of the input the firm needs each year C) the firm's discount rate D) the present value of the firm's current profit