Reserve targets and federal funds targets are compatible when the Federal Reserve wants to
A) lower interest rates and expand reserves.
B) raise interest rates and the money supply.
C) raise interest rates and reserves.
D) contract interest rates and reserves.
A
You might also like to view...
Professor Cowen's objection to fiscal policy spending by government is:
A. the government may rush to start stimulus spending and not spend money in the most effective way possible. B. the government may put too much thought into the spending projects and confuse stimulus spending with industrial policy. C. households and businesses might realize that the boost in spending is from the government and simply save the income they receive. D. the government may not have enough money available to do an appropriate amount of spending.
Food stamps are government-issued "money" that can be used
a. by low-income people to buy food in supermarkets and restaurants b. to exchange for real money to be used for purchases of food c. by low-income people at most food stores to buy specific food items d. by foreign tourists to buy imported foods e. by low-income people to buy only bread, milk, and cheese from government outlets