Author Question: The discount rate's main significance is that: a. changes in the rate are commonly viewed as a ... (Read 64 times)

frankwu · **on:** Jun 30, 2018

The discount rate's main significance is that:
a. changes in the rate are commonly viewed as a signal of the Fed's intentions with respect to monetary policy.
b. changes in the rate are a sign that monetary policy has swung strongly in a new direction.
c. it can be done quietly, without a lot of political debate or a public announcement.
d. a small change in the rate can make a huge change in the number of dollars that are in excess reserves in banks all over the country.

Question 2

Wage contracts force businesses to adjust wages rather than employment in response to an unexpected change in aggregate demand.
a. True
b. False
Indicate whether the statement is true or false