Identify the correct definition of the federal funds rate
A) The federal funds rate is the interest rate at which the Fed lends money to households.
B) The federal funds rate is the interest rate at which banks lend money to the Fed.
C) The federal funds rate is the interest rate at which banks lend their deposits with the Fed to other banks.
D) The federal funds rate is the interest rate at which the Fed lends money to business firms.
C
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If wages a firm pays it workers increase, then
A) the firm's long-run average cost curve shifts upward. B) the firm moves rightward along its long-run average cost curve to where it has diseconomies of scale. C) the firm's long-run average cost curve does not shift and there is no movement along the long-run average cost curve. D) the firm moves rightward along its long-run average cost curve but not necessarily to where it has diseconomies of scale.
A risk neutral individual
a. Values a lottery at more than its expected value b. Values a lottery at less than its expected value c. Values a lottery at its expected level d. Tends to play a lot of lotteries