This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The main policy-making organ of the Federal Reserve System is the A) Board of Governors. B) ... (Read 108 times)

Charlie

  • Hero Member
  • *****
  • Posts: 640
on: Jun 29, 2018
The main policy-making organ of the Federal Reserve System is the
 
  A) Board of Governors.
  B) Federal Reserve Bank presidents.
  C) Federal Open Market Committee.
  D) Joint Congressional Committee on Monetary Policy.

Question 2

Explain the relationship between the real interest rate and the demand for loanable funds. Compare that relationship to the relationship between expected profit and the demand for loanable funds.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

al

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

The real interest rate determines the quantity of loanable funds demanded. There is an inverse relationship between the real interest rate and the quantity of loanable funds demanded. Expected profit affects investment and, because investment is a major source of the demand for loanable funds, the expected profit rate affects the demand for loanable funds. An increase in the expected profit from investing increases investment and thereby increases the demand for loanable funds. Hence there is a positive relationship between the demand for loanable funds and the expected profit rate.


Charlie

  • Member
  • Posts: 640
Reply 2 on: Jun 29, 2018
Wow, this really help

raili21

  • Member
  • Posts: 324
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Symptoms of kidney problems include a loss of appetite, back pain (which may be sudden and intense), chills, abdominal pain, fluid retention, nausea, the urge to urinate, vomiting, and fever.

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

The human body produces and destroys 15 million blood cells every second.

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Additional Disorders of the Skeletal System Additional Disorders of the Skeletal System
The cardiac conduction system. The cardiac conduction system.
The Koeppen System The Koeppen System
The Digestive System The Digestive System
vomerolfactory system vomerolfactory system
Components of the lymphatic system Components of the lymphatic system
Video: Summation - defined, spatial, temporal & AP generation or not

For a complete list of videos, visit our video library