When the Fed lowers the federal funds rate ________
A. aggregate demand increases the same day
B. investment increases, but only after the economy's growth rate rises
C. the quantity of money and loans increase in the short term
D. the inflation rate increases about two years later
D Although few of the impacts of the Fed's policy actions occur immediately, the impact on the inflation rate is particularly delayed.
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Economics can be described as the study of how people use ________ resources to satisfy ________ wants
A) unlimited; unlimited B) unlimited; limited C) limited; unlimited D) limited; limited
Which of the following would you expect to lead to improved environmental quality?
A. An export or production subsidy from the French government to French wheat producers B. An export subsidy for producers of clean technology for producing paper C. Freer trade that promotes production of manufactured goods in developing countries where environmental laws are lax D. A voluntary export restraint on the part of Japanese auto producers
Monetary policy is set by the
A. Regional Federal Reserve banks. B. Federal Advisory Council. C. Federal Open Market Committee. D. Board of Governors.
The purchasing power of money decreases as the
A) demand increases. B) employment increases. C) price level increases. D) production decreases.