Everything Else Held Constant,in the Market for Reserves,when the Federal

question 32

Multiple Choice

Everything else held constant,in the market for reserves,when the federal funds rate is 5%,lowering the discount rate from 5% to 4%

• A)lowers the federal funds rate.
• B)raises the federal funds rate.
• C)has no effect on the federal funds rate.
• D)has an indeterminate effect on the federal funds rate.

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Definitions:

Globalization

The way in which corporations or different organizations gain international prominence or commence operations across the globe.

Workforce Ages

Refers to the range of ages within a group of employees or workers, which can affect the dynamics, capabilities, and perspectives within a workplace.

Incremental Change

A method of making changes gradually in small, manageable steps instead of through one large comprehensive shift.

Excise Tax

A tax imposed on specific goods, services, or activities, either as a fixed amount per unit (quantity tax) or as a percentage of the price (ad valorem tax).