Suppose, at a given federal funds rate, there is an excess demand for reserves in the federal funds market
If the Fed wants the federal funds rate to stay at that level, then it should undertake an open market ________ of bonds, everything else held constant. If the Fed does nothing, however, the federal funds rate will ________. A) sale; increase
B) purchase; increase
C) sale; decrease
D) purchase; decrease
B
Economics
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Stabilization policy refers to the use of:
A. only fiscal policy. B. policy to shift the long-run aggregate supply curve. C. either fiscal or monetary policy. D. only monetary policy.
Economics
In microeconomics, which of the following is synonymous with decreasing returns of scale?
a. monopoly b. economies of scale c. diminishing returns d. diseconomies of scale
Economics