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Economics - Financial Markets 19 Online
OpenStudy (anonymous):

Economic forecasters predict a long period of job growth and consumer spending. The Federal Reserve is most likely to do which of the following to encourage this expansion? Increase federal funds rate Keep the discount rate low Sell government securities Maintain high reserve requirements

OpenStudy (anonymous):

@RANE

OpenStudy (rane):

increase federal fund rates

OpenStudy (anonymous):

Mariposa is buying a car for five thousand dollars. She has two thousand dollars. What is the best way to finance the balance? Store credit Credit card Installment credit Service credit

OpenStudy (rane):

can u colse and re post your new q's pls

OpenStudy (anonymous):

Ok

OpenStudy (anonymous):

The answer to the first one is not "increase federal funds" I put that and got it wrong

OpenStudy (anonymous):

The answer is not C either.

OpenStudy (anonymous):

For the first question.

OpenStudy (anonymous):

for the first one i think it should keep the rate low because during an economic recession, the Fed would want to increase the spending power of citizens. Lowering the discount rate, which is the interest rate banks pay to borrow currency, would increase the ability of banks to give loans. This is an expansionary action by the Fed.

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