The monetary policy instrument the Federal Reserve chooses to use ...

[savannahhooper]

The monetary policy instrument the Federal Reserve chooses to use is the
 
  A) federal funds rate.
  B) monetary base.
  C) fixed exchange rate.
  D) discount rate.
  E) flexible exchange rate.

Question 2

China's government runs a budget surplus. As a result,
 
  A) saving will exceed investment.
  B) if there is no Ricardo-Barro effect, the supply of loanable funds curve lies to the right of the private supply of loanable funds curve.
  C) the quantity of loanable funds decreases.
  D) interest rates should increase.
  E) the Ricardo-Barro effect predicts that the real interest rate will increase.

[Liamb2179]

Answer to Question 1

A

Answer to Question 2

B

[savannahhooper]

Excellent

[lkanara2]

Gracias!