In order to lower the federal funds rate, the Fed ________ government securities in open market operations, so that banks' reserves ________ and the quantity of money ________
A) buys; increase; increases
B) sells; increase; decreases
C) buys; decrease; increases
D) buys; decrease; decreases
E) sells; decrease; decreases
A
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Sjen Mavago, the economics minister of the country of X-Marks-the-Spot, has concluded that entrepreneurs are unable to generate the kind of growth the country needs. Her decision to create state enterprises might be motivated by the desire to
a. earn profit b. provide jobs for friends and relatives of government officials c. take risks d. encourage a free market e. limit government's role in the economy
Which of the following is the formula for calculating compound interest?
a. Compound interest = Future Value – Present Value b. Compound interest = Future Value + Present Value c. Compound interest = Future Value – Principal d. Compound interest = Present Value + Principal