When the Fed wants to lower the Federal funds rate, it: Increases the discount r

Question

When the Fed wants to lower the Federal funds rate, it: Increases the discount rate Increases the reserve ratio Buys bonds from banks and the public Sells bonds to banks and the public Changes in interest rates, ceteris paribus, cause a shift in: Neither the investment demand curve nor the aggregate demand curve The investment demand curve, but not the aggregate demand curve The aggregate demand curve, but not the investment demand curve The investment demand curve and the aggregate demand curve A fall in oil prices will shift the aggregate: Demand curve leftward Demand curve rightward Supply curve rightward Supply curve leftward If Adam's disposable income increases from $4,000 increases from $200 to $300, it may be concluded that Consume is .90 Consume is .75 Consumcis.10 Save is .40 Consider the following Production Possibilities Curve. If the economy were producing 8 units of guns and 12 units of butter per period: This is a possible choice, but would involve unemployment and/or inefficiency This point is unattainable, given the country's resources This is an efficient point Something must be done to reduce the amount of employment

Explanation / Answer

8.

c. buys bonds from publc and banks

as it will increse money supply thus lower the interest rate

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