Equilibrium in the market for bank reserves determines the A) ...

[crobinson2013]

Equilibrium in the market for bank reserves determines the
 
  A) price level.
  B) exchange rate.
  C) federal funds rate.
  D) 30-year Treasury bond rate.
  E) inflation rate.

Question 2

In the figure above, if there is no Ricardo-Barro effect, the government has a ________ because ________.
 
  A) budget deficit; there is no Ricardo-Barro effect.
  B) balanced budget; there is no Ricardo-Barro effect.
  C) budget surplus; the SLF curve lies to the right of the PSLF curve.
  D) budget surplus; there is no Ricardo-Barro effect.
  E) budget deficit; the SLF curve lies to the right of the PSLF curve.

[Ashley I]

Answer to Question 1

C

Answer to Question 2

C