To prevent shortages of cash during a crisis, the Fed:
a. saves up cash in bank vaults around the country and the world.
b. reduces liquidity in the economy so that more cash can be saved.
c. sells U.S. government securities to commercial banks
d. demands interest payments on reserves held at the Fed.
e. increases the discount rate.
a
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________ refers to an action that an individual with private information takes in order to convince others about his information
A) Sniping B) Signaling C) Hedging D) Speculating
Suppose you have a choice of working full-time during the summer or going full-time to summer school. Summer tuition and books are $2,200 . If you worked, you could make $7,000 . Your rent is $1,000 for the summer, regardless of your choice. The opportunity cost of going to summer school is, therefore,
a. $2,200 b. $7,000 c. $8,000 d. $9,200 e. $10,200
Which would shift the aggregate demand curve? A change in:
A. net export spending. B. the legal-institutional environment. C. input prices. D. the prices of imported resources.
The changes in China's foreign direct investment (FDI) policy since 2006 are likely to shift manufacturing FDI away from unskilled-labor-intensive production such as toys.
Answer the following statement true (T) or false (F)