If the Federal Reserve raises the federal funds rate, what is likely to happen? a. There will be more money available for investment and growth. — Consider This: An increase in the federal funds rate will slow down the economy by increasing the cost of borrowing, b. Inflation will increase, and unemployment will decrease. c. Both inflation and unemployment will decrease. d. There will be less money available for investment and growth.

There will be more money available for investment and growth More test answers on https://studyhippo.com/pols-155-final-study-guide/

If the Federal Reserve raises the federal funds rate, what will likely happen to certificates of deposit offered by banks?

The interest rate offered will increase More test answers on https://studyhippo.com/2-10-module-2-exam/

The Taylor rule for federal funds rate targeting does which of the? following?

It links the? Fed’s target for the federal funds rate to economic variables. More test answers on https://studyhippo.com/econ-quiz-15/

How does lowering the target for the federal funds rate? “pour money” into the banking? system?

To increase the money? supply, the Fed buys bonds on the open? market, which increases bank reserves. More test answers on https://studyhippo.com/econ-quiz-15/

The federal funds rate is established on a semiannual basis by the board of governors of the Federal Reserve.

Which of the following statements is False? More test answers on https://studyhippo.com/business-101-chapter-161718/

Economists closely watch the important federal funds rate. This is the interest rate

that commercial banks charge when they make short-term loans to other commercial banks. More test answers on https://studyhippo.com/economics-pretest/

The Fed can increase the federal funds rate by

selling Treasury bills, which decreases bank reserves. More test answers on https://studyhippo.com/econ-6/

When imported goods exceed exported goods, the effect on the balance of trade in the United States is called the ______. a. federal funds rate b. budget deficit c. national debt — Consider This: The United States importing more than it exports contributes to the debt, but it does not cover the totality of it. d. trade deficit

trade deficit More test answers on https://studyhippo.com/pols-155-final-study-guide/

What is the federal funds rate?

1. the interest rate banks charge each other for overnight loans 2. set by the Federal Open Market Committee after each meeting More test answers on https://studyhippo.com/econ-chapter-26/