A bank is less likely to borrow from the Fed when the __________ falls relative to the __________
A) discount rate; required reserve ratio
B) excess reserve; required reserves
C) discount rate; federal funds rate
D) federal funds rate; discount rate
D
You might also like to view...
Economic growth is shown on the production possibilities frontier as
A) a movement from one point on the PPF to another. B) an outward shift in the PPF. C) an inward shift in the PPF. D) the curvature of the PPF.
If the marginal propensity to consume (MPC) is 0.75, the value of the spending multiplier is:
a. 0. b. 1. c. 4. d. 5.
When the IMF provides loans to developing countries, it often requires these countries to adopt:
A. a contractionary fiscal policy and an expansionary monetary policy. B. contractionary monetary and fiscal policies. C. expansionary monetary and fiscal policies. D. a contractionary monetary policy and an expansionary fiscal policy.
If some inputs of production do not vary with the level of output we call them fixed inputs which when multiplied by their price become fixed cost. Which of the following items typically fit this category?
A. Insurance payments B. Interest on loans C. Property taxes D. All of these are fixed costs