If banks borrowed from the Fed when the federal funds rate was below its target level
A) the supply of reserves would decrease and the federal funds rate could fall even further.
B) the supply of reserves would increase and the federal funds rate would rise.
C) the supply of reserves would decrease and the federal funds rate would rise.
D) the supply of reserves would increase and the federal funds rate could fall even further.
D
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New Keynesians conclude that
A) appropriate activist policies will increase the length of cyclical fluctuations. B) appropriate activist policies will have an known effect on the length of cyclical fluctuations. C) appropriate activist policies can dampen cyclical fluctuations. D) none of the above.
Which of the following is probably producing positive externalities?
A) A citizen who becomes well-informed about community issues B) A homeowner who maintains a beautiful lawn C) A person with an engaging smile D) All of the above. E) None of the above.