« previous next »

Author Question: By using open market operations, the Federal Reserve A) adjusts the supply of reserves to keep ... (Read 155 times)

cherise1989

  • Hero Member
  • *****
  • Posts: 555
on: Jun 29, 2018
By using open market operations, the Federal Reserve
 
  A) adjusts the supply of reserves to keep the federal funds interest rate equal to its target.
  B) controls banks' demand for reserves, thereby keeping the federal funds rate equal to its target.
  C) adjusts the demand of reserves to keep bank rates in line with the federal funds rate target.
  D) adjusts the supply and demand of reserves to keep the federal funds interest rate equal to its target.
  E) None of the above answers is correct.

Question 2

In the figure above, the SLF curve is the supply of loanable funds curve and the PSLF curve is the private supply of loanable funds curve. If there is no Ricardo-Barro effect and the government now runs a balanced budget,
 
  A) the interest rate will increase from 4 percent to 6 percent.
  B) there is a surplus of investment funds and the interest rate falls to 4 percent.
  C) there is shortage of investment funds of 0.4 trillion.
  D) the equilibrium interest rate is 6 percent and investment is 1.6 trillion.
  E) the equilibrium interest rate is 4 percent and investment is 1.8 trillion.


kswal303

  • Sr. Member
  • ****
  • Posts: 316
Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

cherise1989

  • Hero Member
  • *****
  • Posts: 555
Reply #2 on: Jun 29, 2018
Thank you :)


kswal303

  • Sr. Member
  • ****
  • Posts: 316
Reply #3 on: Jun 29, 2018
Happy to help you


« previous next »
 

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

Medications that are definitely not safe to take when breastfeeding include radioactive drugs, antimetabolites, some cancer (chemotherapy) agents, bromocriptine, ergotamine, methotrexate, and cyclosporine.

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Did you know?

All patients with hyperparathyroidism will develop osteoporosis. The parathyroid glands maintain blood calcium within the normal range. All patients with this disease will continue to lose calcium from their bones every day, and there is no way to prevent the development of osteoporosis as a result.

Grevy's zebras in Samburu National Reserve. Grevy's zebras in Samburu National Reserve.
The “Flat Head” (Chinook) Indians acquired their name through shaping in infancy, as shown in a diag The “Flat Head” (Chinook) Indians acquired their name through shaping in infancy, as shown in a diag
Annual Federal Deficit (or Surplus), 1992–2016 Annual Federal Deficit (or Surplus), 1992–2016
Hold baby’s hands and (A) cross arms over chest and then (B) open out to the sides. Repeat several ... Hold baby’s hands and (A) cross arms over chest and then (B) open out to the sides. Repeat several ...
Operations Research Operations Research
Transcription of open and covered promoters Transcription of open and covered promoters
Video: Electrical Conduction System of the Heart

For a complete list of videos, visit our video library