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Author Question: The Federal Open Market Committee A) meets weekly to set Fed policy. B) has 7 voting members. ... (Read 118 times)

abc

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on: Jun 29, 2018
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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Reply #1 on: Jun 29, 2018
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
Great answer, keep it coming :)

scottmt

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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