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Author Question: The federal funds rate is ________ of the Fed. A) a technique B) a monetary policy rule C) the ... (Read 76 times)

cnetterville

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on: Jun 29, 2018
The federal funds rate is ________ of the Fed.
 
  A) a technique
  B) a monetary policy rule
  C) the monetary policy instrument
  D) an objective
  E) a goal

Question 2

Suppose the government has a budget surplus of 2 billion. If there is no Ricardo-Barro effect, what occurs?
 
  A) The demand for loanable funds curve shifts rightward, raising the interest rate, and increasing investment.
  B) The supply of loanable funds curve shifts leftward, lowering the interest rate, and increasing investment.
  C) The demand for loanable funds curve shifts leftward, lowering the interest rate, and decreasing investment.
  D) The supply of loanable funds curve shifts leftward, raising the interest rate, and decreasing investment.
  E) The supply of loanable funds curve shifts rightward, lowering the interest rate, and increasing investment.


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ricroger

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Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

E


cnetterville

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

momolu

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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