Refer to the figure. If the Federal funds market is at equilibrium at point B and the Federal Reserve decides to change the rate by a percentage point in order to reduce the chances of the economy going into recession, the supply of funds curve will have to shift to:
A. Sf1
B. Sf2
C. Sf3
D. Sf4
A. Sf1
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The majority of dollars spent by government prior to the Great Depression was spending at the ________. In the post World War II period, two-thirds to three quarters of all dollars spent by government in the United States are spent at the ________
A) federal level; state and local levels B) local level; state level C) state and local levels; federal level D) state and local levels; state level
Recall the Application about the time involved in including cell phones in the calculation of the Consumer Price Index (CPI) to answer the following question(s).According to the Application, as new products are constantly invented and introduced on the market:
A. the bias in the CPI can be large. B. the bias in the CPI tends to become smaller. C. the bias in the CPI will eventually disappear. D. the bias in the CPI will remain virtually unchanged.
A single supplier of a good or service for which there is no close substitute is referred to as a(n)
A) strategic competitor. B) monopoly. C) oligopoly. D) monopolistic competitor.
Explain what factors cause changes in output in: (1 ) the short run; (2 ) medium run; and (3 ) long run
What will be an ideal response?