The nominal interest rate is determined in the market for loanable funds
a. True
b. False
Indicate whether the statement is true or false
True
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Discretionary monetary policy has the drawback that it
A) must lead to very high inflation. B) is currently illegal in the United States. C) makes inflation expectations harder to manage. D) cannot be implemented using changes in the federal funds rate. E) None of the above answers is correct.
Which of the following has led to reduced use of ATMs?
A) some banks closing branches in low-income neighborhoods B) some banks charging fees for transactions performed by tellers that could be done by ATMs C) increased use of debit card transactions D) reductions in fees for overdrafts
If the interest rate is 10 percent per year, and you have $100,000 now, which of the following is closest to what your $100,000 will be worth in one year?
A) $105,000 B) $110,000 C) $100,000 D) $102,000
In a voluntary contributions experiment described at the end of the chapter, the chump is the individual who:
A. is systematically exploited by others. B. contributes money to fund a public good equal to the benefits they ultimately receive. C. free-rides. D. contributes money to fund a public good much less than the benefits they ultimately receive.