Swiss attempts to target monetary aggregates ended in the 1990s because ________
A) the expectations of Swiss households had evolved from being adaptive to rational
B) structural changes in the economy had rendered existing practices inflationary
C) of the resulting increase in interest rates
D) the ensuing deflation increased the real value of debt held by Swiss manufacturing firms
B
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When the Fed increases the money supply,
A) the interest rate rises and this stimulates consumption spending. B) the interest rate falls and this stimulates investment spending. C) the interest rate rises and this stimulates investment spending. D) people spend less because they have more money.
What is the role of the Federal Deposit Insurance Corporation?
a. To insure bank deposits b. To act as a lender of last resort c. To establish regulations for commercial banks d. To monitor the actions of commercial banks e. To insure the assets of commercial banks
If the exchange rate between the Canadian dollar and the American dollar was fixed at 1.30 Canadian dollars per U.S. dollar and investors perceived Canadian bonds to be equal in value and risk to U.S. bonds, if the U.S. bonds are selling for $1,000 and have a 5 percent interest rate, assuming capital flows freely between the two countries what will be the price and the interest rate of the Canadian bonds?
What will be an ideal response?
China has experienced particularly high rates of economic growth as a result of
A. High rates of government spending. B. High rates of consumer spending. C. High rates of capital investment. D. Low rates of saving.