Everything else held constant, in the market for reserves, when the federal funds rate is 3%, raising the discount rate from 5% to 6%
A) lowers the federal funds rate.
B) raises the federal funds rate.
C) has no effect on the federal funds rate.
D) has an indeterminate effect on the federal funds rate.
C
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Suppose the government expenditure increases by $200 and the simple spending multiplier equals 5 . The final increase in output will be: a. $6000
b. $500. c. $200. d. more than $200. e. less than $200.
M1 refers to:
a. Federal Reserve Notes and gold certificates. b. Currency held by the public plus checking account balances. c. The largest of the money-supply definitions. d. None of these.
The official term of office of the chairman of the Fed is
a. 2 years. b. 4 years. c. 7 years. d. 14 years.
The purchase of VCU2 by Tomas Tiergarten, a private resident, causes the nation's:
a. Monetary base to rise. b. M2 money supply to rise. c. M2 money multiplier to rise. d. Monetary base to remain the same.