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Author Question: The Federal Open Market Committee A) meets weekly to set Fed policy. B) has 7 voting members. ... (Read 110 times)

abc

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The Federal Open Market Committee
 
  A) meets weekly to set Fed policy.
  B) has 7 voting members.
  C) always includes the president of the Federal Reserve Bank of New York as a member.
  D) does not include any members of the Board of Governors.

Question 2

An increase in the real interest rate increases the quantity of investment. Is the previous statement correct or incorrect?
 
  What will be an ideal response?



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macagnavarro

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Answer to Question 1

C

Answer to Question 2

The statement is false. The interest rate is the opportunity cost of the funds used to make an investment. Hence an increase in the interest rate decreases the quantity of investment demanded.




abc

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Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review


tuate

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Reply 3 on: Yesterday
Excellent

 

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