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Essentials of Economics 7th Edition by Gregory Mankiw
Edition 7ISBN: 978-1285165950Essentials of Economics 7th Edition by Gregory Mankiw
Edition 7ISBN: 978-1285165950 Exercise 7
The Federal Reserve's target rate for the federal funds rate
A) is an extra policy tool for the central bank, in addition to and independent of the money supply.
B) commits the Fed to set a particular money supply so that it hits the announced target.
C) is a goal that is rarely achieved, because the Fed can determine only the money supply.
D) matters to banks that borrow and lend federal funds but does not influence aggregate demand.
A) is an extra policy tool for the central bank, in addition to and independent of the money supply.
B) commits the Fed to set a particular money supply so that it hits the announced target.
C) is a goal that is rarely achieved, because the Fed can determine only the money supply.
D) matters to banks that borrow and lend federal funds but does not influence aggregate demand.
Explanation
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Verified
The Federal funds rate refers to the tar...
Essentials of Economics 7th Edition by Gregory Mankiw
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