The Fed controls the money supply to achieve the policy goals set by the United States International Trade Commission
a. True
b. False
Indicate whether the statement is true or false
False
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How do banks and financial intermediation support economic growth and development?
(a) By helping businesses secure the funds needed for capital accumulation and technology advancements (b) By assisting customers in buying durable and nondurable goods and services (c) By financing government expenditures when tax revenue falls below planned spending (d) By granting loans to foreign-born individuals to invest in countries outside of the U.S.
Which of the following compose the reserves of a commercial bank?
a. demand deposits and time deposits b. vault cash and deposits of the bank with the Federal Reserve c. U.S. securities and stock equity d. cash and U.S. securities
A decrease in input costs to firms in a market will result in a(n)
a. decrease in equilibrium price and an increase in equilibrium quantity.
b. decrease in equilibrium price and a decrease in equilibrium quantity.
c. increase in equilibrium price and a decrease in equilibrium quantity.
d. increase in equilibrium price and an increase in equilibrium quantity.
Assume that when there is no crowding out, an increase in government spending increases GDP by $100 billion. If there had been partial crowding out, then GDP would have:
A. increased by more than $100 billion. B. increased by $100 billion. C. not increased. D. increased by less than $100 billion.