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Author Question: The form of economic organization in which all property is held in common is called A) communism. ... (Read 63 times)

JGIBBSON

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on: Jun 29, 2018
The form of economic organization in which all property is held in common is called
 
  A) communism.
  B) capitalism.
  C) socialism.
  D) utilitarianism.

Question 2

Explain the differences between using the monetary base versus federal funds rate as the monetary policy instrument. Which does the Fed use as its instrument?
 
  What will be an ideal response?


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Dunkey

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Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

Monetary policy can use either the monetary base or the federal funds rate as its instrument. The monetary base is the sum of Federal Reserve notes, coins, and banks' deposits at the Fed. The federal funds rate is the interest rate banks charge each other to borrow reserves. If the Fed targets the monetary base, the federal funds rate fluctuates to reach equilibrium. If the Fed targets the federal funds rate, the monetary base fluctuates in response to changes in the demand for it. The Fed cannot target both the monetary base and the federal funds rate simultaneously. The Fed uses the federal funds rate as its monetary policy instrument.


JGIBBSON

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Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

shewald78

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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