When the Fed Increases the Fed Funds Rate, Financial Institutions

question 4

True/False

When the Fed increases the Fed Funds Rate, financial institutions "go to the Window".

---

Definitions:

Laffer Curve

A theoretical representation of the relationship between tax rates and the amount of tax revenue collected by governments.

Taxes Labor

Fiscal charges imposed on income earned from labor, either through employment or self-employment.

Labor Demand

The quantity of labor that employers are willing and able to hire at a given wage rate, in a given time period.

Deadweight Loss

The falloff in economic efficiency that strikes when equilibrium for a good or service isn’t met or is beyond reach.