If the Fed Uses Nonborrowed Reserves,a Reserve Aggregate,as a Target,fluctuations

question 17

Multiple Choice

If the Fed uses nonborrowed reserves,a reserve aggregate,as a target,fluctuations in the reserves demand curve will cause ________ to fluctuate.

• A) nonborrowed reserves
• B) the federal funds interest rate
• C) monetary aggregates
• D) the inflation rate

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Definitions:

Preemptive Bombing

A military strategy involving an attack made on the presumption that an enemy is planning an imminent attack, intended to neutralize the perceived threat.

Conservative American College Students

Refers to students enrolled in American colleges who hold conservative values and beliefs politically and socially.

Symbolic Racism

A tendency to express negative biases held about a racial outgroup not at the group directly but at social policies seen as benefiting that group.

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Viewing the world through our own cultural value system and thereby judging actions and people based on our own culture’s views of right and wrong and good and bad.