The federal funds rate is the interest rate charged by:
a. banks for loans to other banks.
b. the Fed for overnight loans.
c. the Fed for borrowed reserves.
d. the federal government on loans to member banks.
a
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When deriving the aggregate demand (AD) curve from the aggregate expenditures model, an increase in U.S. product prices would cause an increase in:
A. the value of household wealth and lower consumption expenditures. B. interest rates and lower investment expenditures. C. exports and imports. D. U.S. resource prices and an increase in aggregate supply.
Nominal GDP is:
a) the sum of all monetary transactions that occur in the economy in a year. b) the sum of all monetary transactions involving final goods and services that occur in the economy in a year. c) the amount of production that occurs when the economy is operating at full employment. d) money GDP adjusted for inflation.