The interest rate the Federal Reserve charges commercial banks to borrow reserves is called the ________ rate.
A. Federal
B. Fed funds
C. prime
D. discount
Answer: D
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During 2014, the country of Economia had a real GDP of $115 billion and the population was 0.9 billion. In 2013, real GDP was 105 billion and the population was 0.85 billion. In 2013, real GDP per person was
A) $128. B) $124. C) $135. D) $117.
The lending ability of commercial banks increases when the:
A. Reserve ratio is raised B. Treasury collects tax revenues C. Fed sells securities in the open market D. Fed buys securities in the open market
Which test is generally the first step in the selection process after a review of minimum standards?
A) polygraph test B) physical agility test C) oral interview test for police officer candidates D) entry-level written test
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower