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Need some help with these practice questions, no working out needed, thanks! Question 33 2 pts The federal funds market is the market where: O
Need some help with these practice questions, no working out needed, thanks!
Question 33 2 pts The federal funds market is the market where: O the Federal Reserve System makes loans to commercial banks. O commercial banks with excess reserves make loans to commercial banks seeking reserves. O commercial banks make loans to the Federal Reserve. O the federal government raises funds to cover its budget deficit. Question 34 2 pts How are changes in the federal funds rate transmitted to consumers and businesses? O The federal funds rate influences the government's decisions for taxes, which influences the decisions made by consumers and businesses. O The federal funds rate influences the inflation and unemployment rates, which influences the decisions made by consumers and businesses. O The federal funds rate influences short-term and long-term interest rates, which influences the decisions made by consumers and businesses. O The federal funds rate influences the government's decisions for spending, which influences the decisions made by consumers and businesses.Question 35 2 pts What is the two-part monetary policy process? 0 The Fed sets a numerical target for the unemployment rate and then uses the federal funds rate to ensure the unemployment rate is consistent with the target. 0 The Fed sets a numerical target for ination and then uses the federal funds rate to ensure the ination rate is consistent with the target. 0 The FOMC sets a target for the federal funds rate range, and the Fed uses its monetary policy tools to ensure interest rates are consistent with the target. 0 None of these are correct Question 36 2 pts Which of the following is true? 0 Monetarists argue that the crowding-out effect is rather large. 0 Monetarists advocate increasing the money supply by a constant rate year after yea r. O Keynesians advocate decreasing the federal funds target rate during economic recessions and decreasing the federal funds target rate during economic expansions. 0 All of these are true. 0 Keynesians argue that the crowding-out effect is rather insignicantStep by Step Solution
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