Suppose on any given day there is an excess supply of reserves in the federal funds market
If the Federal Reserve wishes to keep the federal funds rate at its current level, then the appropriate action for the Federal Reserve to take is a ________ open market ________, everything else held constant. A) defensive; sale
B) defensive; purchase
C) dynamic; sale
D) dynamic; purchase
A
You might also like to view...
According to the Index of Economic Freedom, which of the following is the freest economy in the world?
a. Cuba b. Zimbabwe c. Hong Kong d. North Korea e. Libya
It is possible to distinguish a monopoly from perfect competition by noting that only competitive firms can earn economic profits in the short run.
Answer the following statement true (T) or false (F)
A price ceiling is imposed in a market at $13, well below its equilibrium level. The equilibrium quantity is 27 units if the market was in equilibrium. Which of the following must be true?
a. There is an excess demand at $13. b. There is an excess supply at $13. c. The equilibrium price must be less than $13. d. Quantity supplied is greater than 27 units at $13. e. Quantity demanded is less than 27 units at $13.
A monopolist must produce a good for which there are no close substitutes.
Indicate whether the statement is true or false.