Author Question: If there is a change in the federal funds rate from a target rate due to a decrease in the demand ... (Read 125 times)

MGLQZ

  • Hero Member
  • *****
  • Posts: 579
If there is a change in the federal funds rate from a target rate due to a decrease in the demand for reserves, the Fed can maintain the target by:
 
  A) causing an upward movement along the supply of reserves curve.
  B) causing the supply curve of reserves to shift to the left.
  C) causing a downward movement along the supply of reserves curve.
  D) causing the supply curve of reserves to shift to the right.

Question 2

The menu cost theory suggests that
 
  A) wages and prices move freely and quickly.
  B) the economy is characterized only by perfect competition.
  C) there will be no unemployment.
  D) firms find frequent price changes to be costly.


nixon_s

  • Sr. Member
  • ****
  • Posts: 359
Answer to Question 1

B

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

On average, the stomach produces 2 L of hydrochloric acid per day.

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

For a complete list of videos, visit our video library