By the Time of the Annual Monetary Policy Conference in Jackson

question 86

Multiple Choice

By the time of the annual monetary policy conference in Jackson Hole,Wyoming in 2016,

• A) the monetary base and the Fed's balance sheet remained very large, and the target for the federal funds rate had only slightly risen.
• B) the monetary base and the Fed's balance sheet decreased dramatically, but the target for the federal funds rate had only slightly risen.
• C) the monetary base and the Fed's balance sheet remained very large, but the target for the federal funds rate had returned to its pre-financial-crisis level.
• D) the monetary base and the Fed's balance sheet, as well as the target for the federal funds rate, had returned to pre-financial-crisis levels.

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Definitions:

Expected Total Return

The sum of all anticipated earnings from an investment, including capital gains, interest, and dividends, over a specified period, reflecting its potential profitability.

Optimal R&D

The most efficient level of investment in research and development activities where marginal cost equals marginal benefit.

Expected Rate Of Return

The increase in profit a firm anticipates it will obtain by purchasing capital or engaging in research and development (R&D); expressed as a percentage of the total cost of the investment (or R&D) activity.

Interest-Rate Cost-Of-Funds

The interest expense on borrowings, reflecting the rate at which a company or individual can borrow or lend funds.