Which of the following is a potential monetary policy instrument for the Fed?
A) federal funds rate
B) loanable funds
C) inflation rate
D) profit rates
E) real interest rate
A
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East Asia's crisis was relatively long lived because
A) East Asia's financial institutions had encouraged borrowing all together. B) East Asia's financial institutions had encouraged heavy borrowing in local currency. C) East Asia's financial institutions had extended low-interest loans. D) East Asia's financial institutions had extended high-interest loans. E) East Asia's financial institutions had encouraged heavy borrowing in dollars.
Which of the following statements regarding cartels is not correct?
A) Cartels are sometimes difficult to maintain because a member can cheat by raising its price above the agreed price. B) Cartels restrict industry output in order to raise price. C) Cartels are inherently stable, because oligopolistic firms rarely change price. D) are easier to establish and maintain when the cost functions of the individual members are more similar to one another.
A financial contract in which a bank agrees to sell the expected future returns from an underlying bank loan to a third party is referred to as:
A) loan sale B) loan commitment C) credit rationing D) microlending
A money supply increase in the New Keynesian model is not neutral because
A) consumers are fooled into working harder. B) the real interest falls, the quantity of output demanded rises, and firms supply more output. C) productivity rises, increasing output supply. D) bank lending rises.