The reserves supply schedule has a positive slope because
a. the Fed lowers the discount rate as interest rates rise.
b. the Fed makes more money available at higher interest rates.
c. as interest rates rise, banks will find loans more profitable.
d. as interest rates rise, people will demand more loans.
c
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The difference between an interest rate and some other, benchmark interest rate is known as the
a. spread. b. rate difference c. rate of return differential. d. rent. e. income differential.
Nominal GDP is another term for
a. current dollar GDP. b. constant dollar GDP. c. adjusted dollar GDP. d. relative value GDP.
What is an expansionary gap of real GDP? How is this expansionary gap eliminated in an economy?
Which of the following characteristics of competitive markets is necessary for firms to be price takers? (i) There are many sellers. (ii) Firms can freely enter or exit the market. (iii) Goods offered for sale are largely the same
a. (i) and (ii) only b. (i) and (iii) only c. (ii) only d. (i), (ii), and (iii)