help with # 2. please For purposes of monetary policy. the Reserve has targeted

Question

help with # 2. please

For purposes of monetary policy. the Reserve has targeted the met federal funds rate Treasury bill rate cisco un t rats prime rate If national saving decreases. the sum of domestic investment and net exports must increase the sum of domes investment and foreign investment must the sum of domestic Investment and foreign investment must decrease foreign investment must increase to cower the loss An increase in the demand for Treasury Bass will increase the price of Treasury bulls the interest rule on Treasury bits increase the opportunity Costa of holding money vs. Treasury eventually cause households to hold less money. Concretionary monetary polo to real GDP from rising above potential.

Explanation / Answer

1.A treasury bill rate

For purposes of monetary policy, the Fed has targeted the interest rate known as the federal funds rate.

2.c

When national savings decreases, investment--the primary store of national savings--also decreases. Lower investment leads to lower long-term economic growth

3, b

An increase in tax rates will increase the demand for Treasury bonds

4. d

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