From 2004 to 2006 the Fed raised the federal funds rate gradually in a series of steps. The Fed's purpose was to raise the prime interest rate so that:
A. high inflation rates would fall.
B. aggregate demand would continue to grow consistently and with low inflation.
C. aggregate supply would grow, increasing output and lowering the price level.
D. banks would reduce lending that was building up unmanageable consumer debt.
B. aggregate demand would continue to grow consistently and with low inflation.
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In the Keynesian view,
a. both monetary and fiscal policy can affect income. b. monetary policy can be ineffective when money demand is less interest rate elastic. c. fiscal policy is a more reliable way to stimulate output during a recession. d. all of the above
Which of the following best defines quantity supplied?
a. the amount of a good sellers would choose to produce, in a given set of circumstances b. the amount of a good sellers will be able to sell, in a given set of circumstances c. the various amounts of a good sellers would like to sell over various sets of circumstances d. the amount of a good sellers would like to sell if they could choose the price for which it sold e. the amount of a good that sellers would be able to sell if they could choose the price for which it sold
The horizontal and vertical axes of the Lorenz curve respectively measure:
a. total income and total expenditure as cumulative percentages. b. total income and total population as cumulative percentages. c. total population and total expenditure as cumulative percentages. d. total expenditure and total income as cumulative percentages. e. total population and total income as cumulative percentages.
Which of the following compose the reserves of a commercial bank?
A. checkable deposits and time deposits B. vault cash and deposits of the bank with the Federal Reserve C. U.S. securities and stock equity D. cash and U.S. securities