When the Federal Reserve uses open-market operations to lower the Federal funds rate several times over a year, it is pursuing:
a. A Taylor rule policy
b. A restrictive money policy
c. A prime interest rate policy
d. An expansionary money policy
d. An expansionary money policy
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What costs associated with the new auto-emission standards arise from decisions made in self-interest and in the social interest?
What will be an ideal response?
When a new Walmart comes to a city, ________ percent of sales at the Walmart would have occurred in the city anyway.
A. fifty to sixty B. seventy to eighty C. ninety to ninety-five D. twenty to thirty
The money demand function implies that money demand is
A) positively related to interest rates. B) negatively related to bond prices. C) negatively related to interest rates. D) negatively related to transactions in the economy.
Because resources are scarce, individuals are required to
A) make choices among alternatives. B) improve production but not distribution. C) improve distribution but not production. D) use resources inefficiently. E) sacrifice production but not consumption.