To achieve its target when the federal funds rate is above the target range, the Fed should:
A. buy foreign currency.
B. follow expansionary policy.
C. do nothing.
D. follow contractionary policy.
Answer: B
You might also like to view...
Assume toys are produced using only labor and wood. Which of the following best describes the cost of producing toys?
a. The number of dollars that the laborer spends to purchase the wood. b. The amounts of labor and wood used in the production process. c. The alternative uses that could be found for the labor and wood. d. The monetary value of the labor and wood used.
The members of a society can assign tasks according to ability and distribute benefits in accordance with need only
A) if the government controls the economy. B) if they have a workable procedure for assessing abilities and needs. C) in a socialist or, more likely, a communist society. D) when there are enough of them to assure competent performance of all necessary tasks. E) when they are committed to equity as well as efficiency.
Under the list policies of England, primary production was encouraged while production in manufacturing was discouraged in colonial America
Indicate whether the statement is true or false
When creating market demand curves for privately produced and privately consumed goods, we
A. add the price paid at each quantity. B. take an average of the quantity demanded at each price. C. take an average of the price paid at each quantity. D. add the quantity demanded at each price.