The federal funds rate
A) is determined directly by firm demand for funds.
B) is determined administratively by the Fed.
C) is determined directly by household demand for funds.
D) is determined by the supply of and demand for bank reserves.
D
You might also like to view...
The date at which a recession starts is called the
A) trough. B) peak. C) depression. D) plateau.
________ increases the quantity of capital, and ________ decreases the quantity of capital
A) Depreciation; net investment B) Investment; saving C) Gross investment; net investment D) Net investment; gross investment E) Investment; depreciation
An imperfectly competitive firm has the following total cost curve: C = 100 + 4Q. What is average total cost equal to when Q = 10?
What will be an ideal response?
The country of Zincosa is in an economic slump with a very high unemployment rate. The stock market has crashed, and business confidence is at a low. Interest rates have fallen to 0.05, and the economy is in a liquidity trap. Facing such a crisis, the central bank of the country decides to purchase billions of dollars in bank debt and securities. Which of the following factors would most likely
have influenced the central bank to take such a step? a. The crash of the stock market b. A high rate of inflation c. A low rate of inflation d. The low interest rates