The Fed influences the interest rate by using which of the following tools? i. open market operations ii. taxes on bank accounts iii. changes in required reserve ratios
A) i only
B) ii only
C) iii only
D) Both i and iii
E) i, ii and iii
D
You might also like to view...
A typical corn farmer won't use cost-plus-markup pricing because
A) his costs are low enough. B) he isn't interested in maximizing net revenue. C) he strives for markdown pricing, not markup pricing. D) he has no control over the market price of corn.
Suppose there is an unexpected increase in real interest rates. Using the AD/AS model, describe the effects of this policy in the long run and the short run, assuming everything else equal
Which of the following is a leading indicator for economic? growth?
A) Duration of unemployment claims. B) Industrial production. C) S&P 500 index. D) Gross domestic product.
Refer to the data provided in Table 11.1 below to answer the following question(s).
Table 11.1 
Refer to Table 11.1. If the interest rate is 5%, Nashbar Bicycle should
A. not fund any of the projects. B. fund all of the projects except for the employee fitness center. C. fund only the employee fitness center. D. fund all of the projects.