When forecasting interest rates and the direction of monetary policy, economists often examine the
A) Federal Deposit Insurance Corporation Report.
B) Economic Report of the President.
C) Federal Advisory Council Statement.
D) Federal Open Market Committee directive.
D
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During the 2008 financial crisis, it became:
A. easier for individuals but harder for businesses to obtain loans. B. harder for individuals but easier for businesses to obtain loans. C. harder for both individuals and businesses to obtain loans. D. easier for both individuals and businesses to obtain loans.
Suppose the real interest rate rises and the quantity of loanable funds increases. These changes could have been the result of
A) firms expecting higher future profits. B) firms expecting lower future profits. C) households expecting higher future income. D) in increase in the default risk.
You are given the following information on the macroeconomy:
Consumption: 200 + 0.75Y Investment: 100 + 0.10Y Government Spending 500 Exports 100 Imports 50 + 0.25Y Compute the equilibrium level of income, the size of the multiplier, and the change in equilibrium income for an increase in autonomous consumption of $50 million.
The sustained productivity growth of railroads occurred primarily because of:
a. increased economies of scale. b. more powerful locomotives and more efficient freight cars. c. stronger steel rails. d. the advent of refrigerator cars.