The interest rate on loans from one bank to another bank is referred to as _____.

Question 36 options:

the discount rate

the federal funds rate

the required reserve ratio

the inflation rate

Question 37(1 point)

Which of the following would cause the money demand curve to shift to the right?

Question 37 options:

An increase in the inflation rate

An increase in interest rates

A decrease in GDP

A technological advance

Question 38(1 point)

When the Fed conducts an open market purchase, the money supply _____.

Question 38 options:

increases

decreases

not enough information

Question 39(1 point)

When the Fed conducts an open market purchase, interest rates _____.

Question 39 options:

increase

decrease

not enough information

Question 40(1 point)

If the economy is in an expansion, optimal monetary policy to achieve full employment would be _____.

Question 40 options:

Increase taxes

increase government spending

increase interest rates

Decrease government spending