Which statement about changes in the discount rate is true?
a. The discount rate is usually set lower than the federal funds rate to encourage borrowing.
b. The discount rate is rarely changed because it has a huge impact on the money supply.
c. The Fed can raise the discount rate to increase the money supply.
d. Changes in the discount rate are seen as a signal of the Fed’s monetary policy intentions.
d. Changes in the discount rate are seen as a signal of the Fed’s monetary policy intentions.
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In the above figure, when real disposable income equals 600
A) there is dissaving. B) real disposable income exceeds consumption. C) consumption is less than disposable income. D) consumption equals real disposable income.
A potential problem arises in principal-agent relationships
a. because the agents and the principals have identical goals b. because the principals may want to minimize his profits, while the agent may want to maximize them c. because the agents may have different goals from the principals d. the goals of principals and agents are irrelevant