Suppose,at a Given Federal Funds Rate,there Is an Excess Demand

question 74

Multiple Choice

Suppose,at a given federal funds rate,there is an excess demand for reserves in the federal funds market. If the Fed wants the federal funds rate to stay at that level,then it should undertake an open market ________ of bonds,everything else held constant. If the Fed does nothing,however,the federal funds rate will ________.

• A)sale;increase
• B)purchase;increase
• C)sale;decrease
• D)purchase;decrease

Analyze Erikson's psychosocial stages and their comparison to Freudian stages.

Learn about the methods and implications of various conditioning types in shaping behavior.

Understand the Myers-Briggs Type Indicator (MBTI) dimensions and their implications.

Know the various personality and psychological assessment tools and their applications.

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Definitions:

U.S. Net Exports

The value difference between what the United States exports to other countries and what it imports, which can be positive (surplus) or negative (deficit).

Aggregate Demand

The total call for goods and services throughout an economy, calculated at a predetermined price level during a given time period.

U.S. Financial Institutions

Organizations that provide financial services, such as banks, insurance companies, and stock exchanges, within the United States.

Bonds

A rephrased definition: Fixed-income investments that represent loans made by an investor to a borrower, typically corporate or governmental.