When the Federal Reserve raises the target Federal funds rate, it:
A. Sells government securities to increase the excess reserves available for overnight loan
B. Buys government securities to increase the excess reserves available for overnight loan
C. Sells government securities to decrease the excess reserves available for overnight loan
D. Buys government securities to decrease the excess reserves available for overnight loan
C. Sells government securities to decrease the excess reserves available for overnight loan
You might also like to view...
A) A recent news report stated that the unemployment rate in the country Lithasia had increased from 10.2% to 18.2% from 2003 to 2013 and that the government has adopted strict fiscal measures to expand employment
Would this report be considered microeconomic or macroeconomic analysis? b) Students in a class are discussing how a monopolist should determine his profit-maximizing output. Would this discussion be considered microeconomic or macroeconomic analysis?
In economics, the concept of opportunity cost is:
a. negated by ensuring that the government has a role in a capitalist society. b. defined to be the highest-valued alternative that must be forgone when a choice is made. c. best illustrated by knowing why consumers choose one good over another. d. quantifiable only if you know the real dollar price of the goods and services you are giving up to consume something. e. the methodology that government economists use to determine the total amount of the national debt.