An increase in the federal funds rate is a signal that the Fed wants a tighter monetary policy.
Answer the following statement true (T) or false (F)
True
A higher federal funds rate is a signal to banks that the Fed wants to increase interest rates and pursue a tighter monetary policy.
You might also like to view...
Modern antitrust policy began in response to
a. abuses of market power in the oil industry. b. the inability of railroads to compete effectively with the new trucking industry. c. the charge that the rights of big business were not adequately protected. d. attempts by business leaders to pack Congress with corrupt legislators.
In the rational expectations view:
A. Wages are flexible downward but prices are inflexible downward B. Prices are flexible downward but wages are inflexible downward C. Discretionary policy tends to be countercyclical D. Discretionary policy tends to be ineffective