The Fed can engage in preemptive strikes against a rise in inflation by ________ the federal funds interest rate; it can act preemptively against negative demand shocks by ________ the federal funds interest rate

According to social interest theory, ________

A) price regulations are unconstitutional B) regulation helps markets achieve efficiency C) monopoly practices last forever D) unregulated firms try to avoid creating deadweight loss

A sign that the Federal Reserve is moving to lower interest rates would be

A) a reduction in bank reserves. B) an increase in margin requirements. C) a widening gap between the Treasury bill yield and the discount rate. D) a narrowing gap between the Treasury bill yield and the discount rate.