The People's Bank of China announced that it was lowering by 1.08 percentage points the one-year lending rate in response to the slowdown in the Chinese economy. This rate is the Chinese equivalent of the federal funds rate in the United States.
Www) nytimes.com, 11/26/2008
This policy ________ the supply of loanable funds. As a result, the long-term real interest rate ________, and planned expenditures ________.
A) increases; increases; increase
B) decreases; decreases; decrease
C) increases; decreases; increase
D) decreases; increases; increase
Correct Answer:
Verified
Q148: If the Fed follows the Taylor rule
Q156: The Taylor rule uses three variables to
Q159: Suppose that the inflation rate is 3
Q163: "As the Fed Chases Inflation, Critics Shout,
Q164: In September 2012 the Fed announced that
Q168: The People's Bank of China announced that
Q173: In September 2012 the Fed announced that
Q175: The People's Bank of China announced that
Q178: In November 2008, the Reserve Bank of
Q200: "As the Fed Chases Inflation, Critics Shout,
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents