Macroeconomics CH1 Quiz P.1

Macroeconomics CH1 Quiz P.1 - The Fed funds rate is a...

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The Fed funds rate is a market interest rate that one bank charges another for the temporary use of its unneeded funds on deposit at the Fed. A bank can also borrow from the Fed at its discount rate, which is one percentage point higher than the target Fed funds rate. If there is a recessionary gap in the economy, discretionary fiscal policy  would likely involve  an action to A) shift both the aggregate demand curve and aggregate supply curve to  the left. B) shift the aggregate demand curve to the right. C) shift both the aggregate demand curve and aggregate supply curve to  the right. D) shift the aggregate demand curve to the left. Points Earned: 10.0/10.0 Correct Answer(s): B 2. The national debt is the difference between current government  expenditures and taxes. A) True B) False Points Earned: 10.0/10.0 Correct Answer(s): False 3. The impact of expansionary fiscal policy is weakened because of crowding  out.
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A) True B) False Points Earned: 10.0/10.0 Correct Answer(s): True 4. Judged by international standards, the national debt of the United States,  in terms of its national   debt as a percentage of GDP is A) the highest among the developed nations. B) below average among the developed nations.
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Macroeconomics CH1 Quiz P.1 - The Fed funds rate is a...

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