The tools of monetary policy for altering the reserves of commercial banks are the:
a. Discount rate, reserve ratio, and open-market operations
b. Tax rate and level of government spending
c. Consumer price index and unemployment rate
d. Public debt, budget surplus, and budget deficit
a. Discount rate, reserve ratio, and open-market operations
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The times during which real GDP increases are referred to as
A) contractions. B) expansions. C) anti-cycles. D) corrections.
Objective probabilities are based on ________ and ________ frequencies.
A) educated guesses; popular B) educated guesses; relative C) data; popular D) data; relative
If the dollar price of the euro goes from $1 to 90 cents, the euro has
a. appreciated, and Europeans will find U.S. goods cheaper. b. appreciated, and Europeans will find U.S. goods more expensive. c. depreciated, and Europeans will find U.S. goods cheaper. d. depreciated, and Europeans will find U.S. goods more expensive.
The risk premium of a financial asset is the:
A. additional price that must be paid for riskier investments. B. rate that compensates for risk. C. rate that compensates for the risk of inflation. D. same as the discount rate.