Financial markets pay close attention to changes in the federal funds rate because these changes ________.
A. indicate commercial bank lending policies
B. indicate the Fed's plans for monetary policy
C. directly affect the interest payments on the national debt
D. directly affect a large volume of loans
Answer: B
You might also like to view...
Which of the following is a defining characteristic of a perfectly competitive market?
A) advertisements by well-known celebrities B) persistent economic profits in the long run C) no restrictions on entry into the industry D) higher prices being charged for certain name brands
When the government increased spending during the 1930s in an attempt to create jobs and end the Great Depression, it provided an example of expansionary
(a) fiscal policy. (b) monetary policy. (c) regulatory policy. (d) welfare policy.
With respect to the aggregate demand curve, a tax cut will:
A. Move the economy down along the curve. B. Move the economy up along the curve. C. Shift the curve leftward. D. Shift the curve rightward.
An increase in the value of the dollar will __________ exports and __________ imports.
Fill in the blank(s) with the appropriate word(s).