Suppose on any given day there is an excess demand of reserves in the federal funds market
If the Federal Reserve wishes to keep the federal funds rate at its current level, then the appropriate action for the Federal Reserve to take is a ________ open market ________, everything else held constant. A) defensive; sale
B) defensive; purchase
C) dynamic; sale
D) dynamic; purchase
B
Economics
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The change in potential real GDP and aggregate supply shown in the graph above can be a result of
A) a fall in the price level. B) a decrease in the money wage rate. C) an increase in the real wage rate. D) an increase in the quantity of capital. E) a decrease in the money price of oil.
Economics
In the standard consumption function of C = a + bY, the MPC is
A) Y. B) bY. C) a. D) b.
Economics