Which of the following is the Fed's monetary policy instrument? ...

[SO00]

Which of the following is the Fed's monetary policy instrument?
 
  A) the demand for reserves
  B) the supply of reserves
  C) the federal funds rate
  D) the core inflation rate
  E) the output gap

Question 2

In the figure above, the DLF curve is the demand for loanable funds curve and the PDLF curve is the private demand for loanable funds curve.
 
  If there is no Ricardo-Barro effect, the figure shows the situation in which the government has a ________ so that the equilibrium real interest rate is ________ and the equilibrium quantity of investment is ________.
  A) budget deficit; 6 percent; 1.5 trillion
  B) balanced budget; 6 percent; 1.5 trillion
  C) budget surplus; 4 percent; 1 trillion
  D) budget surplus; 6 percent; 1.5 trillion
  E) budget deficit; 4 percent; 1 trillion

[heinisk01]

Answer to Question 1

C

Answer to Question 2

A

[SO00]

Correct answers!

[heinisk01]

Great! Please up vote