The Fed's initial step in pursuing restrictive monetary policy using the federal funds rate is to:
A. announce a higher target.
B. sell bonds to banks and the public.
C. raise the discount rate.
D. raise the prime interest rate.
A. announce a higher target.
Economics
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An economy's production function is Y = A , and the economy's total output in equilibrium is $800 billion. Total capital income in this economy is ________
A) $200 billion B) $25 billion C) $750 billion D) $267 billion E) none of the above
Economics
If demand is price inelastic, then
a. buyers do not respond much to a change in price. b. buyers respond substantially to a change in price, but the response is very slow. c. buyers do not alter their quantities demanded much in response to advertising, fads, or general changes in tastes. d. the demand curve is very flat.
Economics