Economic analysis that focuses on the market behavior of firms and households is called

In financial markets, leverage refers to:

A) the use of borrowed money in an investment B) the power to influence the market C) the use of political connections in attaining financial outcomes D) the role that speculators have in impacting market outcomes

The Federal Reserve econometric model estimates that the liquidity effect an increase in the money supply will

A) lower interest rates for 6 months to a year. B) lower interest rates permanently. C) have no effect on interest rates. D) raise interest rates after 6 months to a year.