If the Fed engages in quantitative easing, it has likely
A) started paying interest on required reserves.
B) increased the federal funds rate by selling private securities.
C) increased the discount rate to prevent inflation.
D) decreased the discount rate by selling its own securities.
E) decreased the federal funds rate to almost zero by buying large sums of securities.
E
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Most of the total income earned in the U.S. economy is ultimately paid to
a. landowners in the form of rent. b. owners of capital in the form of interest. c. households in the form of wages and fringe benefits. d. households in the form of welfare, disability, and Social Security payments.
The slope of the supply of loanable funds is based on the logic that an increase in interest rates
a. makes saving more attractive. b. makes saving less attractive. c. makes investment more attractive. d. makes investment less attractive.