The effectiveness of the federal funds rate as an operating target is limited because
A) the Treasury often uses federal funds market.
B) reserve requirements often change.
C) the demand for reserves is difficult to predict.
D) the deposit expansion multiplier is difficult to predict.
Correct Answer:
Verified
Q18: Which of the following is an interest
Q19: Total bank reserves are an example of
Q20: Which order does the Federal Reserve's plan
Q21: Targeting reserves would be the best choice
Q22: A(n)_ in consumer spending will _ the
Q24: The supply of and demand for bank
Q25: The federal funds rate is a better
Q26: If banks borrowed from the Fed when
Q27: If the federal funds rate is above
Q28: One effect of a shrinking economy is
A)
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