Suppose the Federal Reserve lowers the federal funds rate. Put the following changes in order in which they occur, starting with the changes that take place almost immediately and ending with the changes that may occur up to a year afterwards:
i. Quantity of money increases.
ii. Quantity of reserves increases.
iii. Aggregate demand increases.
iv. The long-term real interest rate falls.
A) ii-i-iv-iii B) i-ii-iii-iv C) i-ii-iv-iii D) ii-i-iii-iv E) iii-iv-i-ii
A
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The official reserve transactions balance in the United States balance of payments accounts is
a. reflects the difference between government spending and total taxes. b. negative if a current account deficit exceeds a capital account surplus. c. positive if a current account deficit exceeds a capital account surplus. d. none of the above
Over the course of the 20th century, _____
a. federal government expenditures have grown less than state and local expenditures b. federal government expenditures have increased substantially as a percentage of GDP c. federal government expenditures remained fairly constant except during wartime d. federal government expenditures have always been higher than the expenditures of state and local governments.