If the fed desired to reduce the federal funds rate
a. it would conduct an open market...
Business, 28.12.2019 01:31 adriannacomrosenbark
If the fed desired to reduce the federal funds rate
a. it would conduct an open market sale, reducing reserve supply.
b. it would conduct an open market sale increasing reserve demand.
c. it would conduct an open market purchase, reducing reserve demand.
d. it would conduct an open market purchase, increasing reserve supply.
Answers: 1
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Classifying inflows and outflows of cash classify each of the following items as an inflow (i) or an outflow (o) of cash, or as neither (n). lg 2 lg 2 item change ($) item change ($) cash +100 accounts receivable −700 accounts payable −1,000 net profits +600 notes payable +500 depreciation +100 long-term debt −2,000 repurchase of stock +600 inventory +200 cash dividends +800 fixed assets +400 sale of stock +1,000
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Suppose the government enacts a stimulus program composed of $600 billion of new government spending and $300 billion of tax cuts for an economy currently producing a gdp of $14 comma 000 billion. if all of the new spending occurs in the current year and the government expenditure multiplier is 1.5, the expenditure portion of the stimulus package will add nothing percentage points of extra growth to the economy. (round your response to two decimal places.)
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