Author Question: The table above gives a nation's investment demand and saving supply schedules. It also has the ... (Read 135 times)

joesmith1212 · **on:** Jun 29, 2018

The table above gives a nation's investment demand and saving supply schedules. It also has the government's net taxes and expenditures. The loanable funds market is in equilibrium when the real interest rate is

A) 7 percent B) 4 percent. C) 3 percent D) 6 percent. E) 5 percent.

Question 2

To change the federal funds rate, the Fed

A) coordinates with banks on establishing the new rate.
B) tells banks how much to charge.
C) uses open market operations to change the quantity of reserves.
D) changes the income tax rate on interest income.
E) increases or removes money from the stock market.