Which of the following is an interest rate target specified in the FOMC directive?
A) Discount rate
B) Treasury bond rate
C) Federal funds rate
D) The prime rate
C
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Refer to Figure 2-1. ________ is (are) technically efficient
A) Point A B) Point B C) Point C D) Points B and C
You lend $5,000 to a friend for one year at a nominal interest rate of 10%. The CPI over that year rises from 180 to 190. What is the real rate of interest you will earn?
A) 0% B) 4.4% C) 5.5% D) 5.8%
The monetarist explanations of the Great Depression focus on
a. falls in the LM curve and aggregate demand. b. falls in aggregate supply. c. fall in the IS curve and aggregate demand.. d. falls in expectations and the expected price level.
The technique used to calculate the CPI implicitly assumes that consumers buy
A) relatively more of goods with relative prices that are increasing. B) goods and services whose quality improves at the rate of growth of real GDP. C) relatively less of goods with relative prices that are decreasing. D) more computers and CD players and fewer black -and-white TVs. E) the same relative quantities of goods as in a base year.