The Fed can attempt to increase the federal funds rate by
A) selling Treasury bills, which increases bank reserves.
B) buying Treasury bills, which increases bank reserves.
C) selling Treasury bills, which decreases bank reserves.
D) buying Treasury bills, which decreases bank reserves.
Answer: C
You might also like to view...
A decrease in the price of an input will
A) increase demand for the product. B) decrease demand for the product. C) increase supply of the product. D) decrease supply of the product.
Which of the following acts prohibits two competitors from merging with one another for the purpose of reducing competition?
A) the Sherman Act B) the Clayton Act C) the Federal Trade Commission Act D) the Robinson-Patman Act
In the case of a domestic monetary shock, floating exchange rates
A) make the home economy less vulnerable. B) make the home economy more vulnerable. C) make the foreign economy more vulnerable. D) would not affect the foreign economy. E) would not affect the home economy.
Which measure of inflation best reflects changing prices for the average consumer?
A. Headline inflation B. Core inflation C. Hyper inflation D. Nominal inflation