Answer the following questions true (T) or false (F)
1. Rising nominal GDP will increase the demand for money and short-term interest rates.
2. Buying a house during a recession may be a good idea if your job seems secure because the Federal Reserve often lowers interest rates during a recession.
3. In 2008, the Fed began paying banks interest on their reserve holdings.
1. TRUE
2. TRUE
3. TRUE
Economics
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In the short run in the Keynesian model, a sharp decline in oil prices would leave the economy with a ________ level of output and a ________ real interest rate
A) higher; lower B) lower; higher C) lower; lower D) higher; higher
Economics
If Brazil buys $100 million of tractors from the U.S., then U.S. net exports will decrease
a. True b. False Indicate whether the statement is true or false
Economics