In the market for bank reserves, if the federal funds rate target is higher than the federal funds rate, the Fed will take action to ________ reserves.
Fill in the blank(s) with the appropriate word(s).
decrease the supply of
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Which of the following statements is true?
A) A rational consumer makes his decisions depending on what the majority chooses. B) A trade-off refers to the exchange of goods between economic agents through a barter system or mutual exchange. C) A budget constraint is an economic tool that quantifies the trade-off between consumption of two goods. D) All rational economic agents attempt to maximize their income.
The debt held by the people themselves neither adds to nor subtracts from national production or consumption. That neutrality, however, doesn't rule out complications
Indicate whether the statement is true or false
Although monetary policy cannot reduce the natural rate of unemployment, other types of government policies can
a. True b. False Indicate whether the statement is true or false
A market equilibrium might not maximize total economic surplus because:
A. in a market equilibrium individuals do not act rationally. B. efficiency is not an important social goal. C. in a market equilibrium individuals do not exploit all opportunities for individual gain. D. sometimes goods entail costs and benefits that do not fall on buyers and sellers.