If the MPC is .8 and government spending falls by $20 billion, GDP will fall by
A. $16 billion.
B. $20 billion.
C. $80 billion.
D. $100 billion.
D. $100 billion.
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The demand curve for federal funds is ________.
A. downward-sloping, because higher interest rates encourage commercial banks to borrow federal funds B. upward-sloping, because higher interest rates encourage commercial banks to lend federal funds C. downward-sloping, because higher interest rates discourage commercial banks from borrowing federal funds, but lower rates encourage borrowing D. upward-sloping, because higher interest rates discourage commercial banks from lending federal funds
All inferior goods have upward-sloping demand curves.
Answer the following statement true (T) or false (F)
The table above shows the exchange rates between various currencies and the U.S. dollar. Between 2015 and 2016, the U.S. dollar ________ against the Euro and ________ against the Japanese yen
A) depreciated; depreciated B) appreciated; appreciated C) appreciated; depreciated D) depreciated; appreciated
Risk-based deposit insurance premiums have recently been __________ and this is expected to __________ the moral hazard problem of deposit insurance
A) abolished; alleviate B) abolished; worsen C) established; alleviate D) established; worsen