One important current monetary policy question is

A. how long the fed funds rate has been near zero.
B. whether quantitative easing can raise the funds rate back to a normal level.
C. how soon to raise the fed funds rate back to a normal level.
D. whether to raise the fed funds rate back to a normal level.


Answer: C

Economics

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In a move to free the economy from unnecessary regulation, Congress passes legislation to remove sugar price supports. What would most likely happen to the number of producers of sugar?

A. It would decrease, because sugar prices would fall. B. It would decrease, because sugar prices would rise. C. It would increase, because sugar prices would fall. D. It would increase, because sugar prices would rise.

Economics

With regard to British trade and commercial policies, all of the following are true except

(a) British trade and commercial policies had been somewhat beneficial, from the colonials' point of view, but now (the 1770s) they had become intolerable. (b) These policies, unlike land, did not take away American rights so much as they attempted to tax the exercise of them. (c) After 1763 the English believed they were free to change their policies drastically to better accomplish the policy goals. (d) By the 1770s, like land, these policies had become insupportable after a long period of relative success.

Economics

What are the two meanings of interest in economics?

What will be an ideal response?

Economics

Which of the following is true? a. The Rule of 70 says that the number of years necessary for a nation to double its output is approximately equal to the nation's growth rate divided by 70. b. Economic growth is usually measured by the annual percent change in the nominal output of goods and services per capita. c. An increase in labor input necessarily increases output per capita

d. Neither the initial development process nor the sustained growth of an economy is dependent on a large natural resource base.

Economics