The federal funds rate is:     A) set by Congress.   B) determined in the money market by the supply of and demand for money.   C) determined in the real market by the aggregate supply and aggregate demand curves.   D) the interest rate that banks pay when they borrow directly from the Fed.

Economics For Today
10th Edition
ISBN:9781337613040
Author:Tucker
Publisher:Tucker
Chapter26: Monetary Policy
Section: Chapter Questions
Problem 4SQP
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The federal funds rate is:

 

 

A)

set by Congress.

 

B)

determined in the money market by the supply of and demand for money.

 

C)

determined in the real market by the aggregate supply and aggregate demand curves.

 

D)

the interest rate that banks pay when they borrow directly from the Fed.

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