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 69 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
Great answer, keep it coming :)

adammoses97

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Did you know?

The U.S. Pharmacopeia Medication Errors Reporting Program states that approximately 50% of all medication errors involve insulin.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

Spider main organs Spider main organs
The female reproductive system. (a) Sagittal section through the pelvis. (b) Top view of pelvic orga The female reproductive system. (a) Sagittal section through the pelvis. (b) Top view of pelvic orga
With input from sensory neurons, activation of the reticular activating system causes arousal of the ... With input from sensory neurons, activation of the reticular activating system causes arousal of the ...
Overview of factors affecting renin release: (a) activation of the sympathetic nervous system; (b) ... Overview of factors affecting renin release: (a) activation of the sympathetic nervous system; (b) ...
How to manually solve a linear system with three variables without matrices (Question 1 of 2) How to manually solve a linear system with three variables without matrices (Question 1 of 2)
Respiratory system of a bird. Respiratory system of a bird.
Video: ATPase function - membrane transport, contractile proteins and synthesis

For a complete list of videos, visit our video library