Use the following graph for the federal funds market to answer the next question.If the Fed wants to raise the federal funds rate by one-half of a percentage point, it should ________.

A. act to increase reserves by $50 billion
B. buy bonds from banks and the public
C. act to reduce reserves by $50 billion
D. pursue an expansionary monetary policy


Answer: C

Economics

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Competitive markets tend to eliminate economic discrimination, but there are many historical examples of firms that hired few, or no, black or female workers

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Economics

The basic reason that supply curves slope upward is that

a. demand curves slope downward b. production is characterized by increasing costs c. profits decline as product prices rise d. greater output can only result from improved technology e. price and quantity supplied are inversely related

Economics

What particularly important role do courts play in a market economy?

Economics

The most important role of the Federal Reserve in today's US economy is

A. Negotiating with foreign nations to reduce the enormous trade deficit B. Controlling the money supply to pursue economic objectives C. Balancing the government's budget by increasing taxes and cutting spending

Economics