The federal funds rate is the interest rate that _______ charge(s) _______

A. banks; other banks
B. the Fed; commercial banks
C. banks; their best corporate customers
D. banks; on federal student loans


A. banks; other banks

Economics

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In 1970 the CPI was 39, and in 2000 it was 172. A local phone call cost $0.10 in 1970. What is the price of this phone call in 2000 dollars?

A) $1.42 B) $0.39 C) $1.72 D) $0.44 E) $0.23

Economics

When a game is played repeatedly

A) only customers learn. B) customers and firms are both able to learn. C) firms end up colluding. D) a prisoner's dilemma will be the equilibrium.

Economics

"Output fell 2 percent last quarter" is an example of a positive economic statement

a. True b. False

Economics

Figure36-9 ? ? In Figure 36-9, the C + I + G + (X? IM)1 line is flatter than the C + I + G + (X? IM)0 line because the

A. (X? IM)1 line indicates that net exports decline as GDP rises. B. (X? IM)1 line indicates that net exports rise as GDP rises. C. multiplier is greater for the (X? IM)1 line. D. (X? IM)1 line indicates that tariffs, quotas, and other trade barriers are keeping net exports below their full potential.

Economics