When the Fed considers the rate of inflation to be undesirably high, it would most likely
a. encourage banks to provide loans by lowering the discount rate
b. encourage banks to provide loans by raising the discount rate
c. restrict bank lending by lowering the discount rate
d. restrict bank lending by raising the discount rate
e. restrict bank lending by lowering the federal funds rate
D
You might also like to view...
Entrepreneurs
A. receive most of their income through inheritance. B. receive interest payments for their services. C. take risks in order to earn profits. D. are unemployed except during economic boom periods.
________ is the study of economic aggregates and the economy as a whole
A) Ergonomics B) Econometrics C) Macroeconomics D) Microeconomics
When the economy suffers a temporary negative supply shock and the monetary policy makers try to stabilize economic activity in the short run, then
A) aggregate demand curve shifts rightward. B) output will be at its potential. C) inflation rate will be higher. D) all of the above. E) both A and B.
Taking explicit account of a rival's expected response to a decision you are making is called:
A. economic decision making. B. strategic decision making. C. competitive decision making. D. monopolistic decision making.