Author Question: If there is a change in the federal funds rate from a target rate due to a decrease in the demand ... (Read 95 times)

MGLQZ

  • Hero Member
  • *****
  • Posts: 579
If there is a change in the federal funds rate from a target rate due to a decrease in the demand for reserves, the Fed can maintain the target by:
 
  A) causing an upward movement along the supply of reserves curve.
  B) causing the supply curve of reserves to shift to the left.
  C) causing a downward movement along the supply of reserves curve.
  D) causing the supply curve of reserves to shift to the right.

Question 2

The menu cost theory suggests that
 
  A) wages and prices move freely and quickly.
  B) the economy is characterized only by perfect competition.
  C) there will be no unemployment.
  D) firms find frequent price changes to be costly.


nixon_s

  • Sr. Member
  • ****
  • Posts: 359
Answer to Question 1

B

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

Did you know?

Nitroglycerin is used to alleviate various heart-related conditions, and it is also the chief component of dynamite (but mixed in a solid clay base to stabilize it).

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

For a complete list of videos, visit our video library