Refer to the diagram for the federal funds market. If the federal funds rate rose from 3.5 percent to 4.0 percent, which of the following is the most likely explanation?
A. The Fed sold bonds to banks.
B. The Fed bought bonds from banks.
C. The demand for federal funds fell.
D. The Fed raised the prime interest rate.
A. The Fed sold bonds to banks.
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Money is the most liquid asset available because
a. it is a store of value. b. it is a medium of exchange. c. it is a unit of account. d. it has intrinsic value.
When economists speak of full employment, they refer to the case in which the sum of frictional and structural unemployment is
A) falling over time. B) equal to zero. C) equal to the actual amount of unemployment. D) greater than the level of deficient demand unemployment.
Policies which promote good governance of a society are:
A. based on favoritism. B. not important to pursue in developing countries. C. central to economic growth. D. uncommon in nations with high growth rates.
The largest fiscal stimulus package enacted in U.S. history was done during whose administration?
A. President Barack Obama B. President Bill Clinton C. President George W. Bush D. President Donald Trump