Typically, increasing the difference between the discount and federal funds rates causes
A) an increase in market interest rates. B) high corporate profits.
C) no change in interest rates. D) a boom in the economy.
A
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Which of the following is not a reason why some production continues in households?
a. Some household production requires many specialized resources b. The opportunity cost of household production has decreased over time c. Household production avoids taxes d. There have been important technological advances in household production e. Some households prefer the ability to control production
The long-run effect of reducing the government budget deficit would be
a. a higher price level and a lower level of output b. a lower price level and a lower level of output c. a higher price level and a higher level of output d. a higher price level with unchanged output e. a lower price level with unchanged output
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and reserves account in the context of the Three-Sector-Model? a. The real risk-free interest rate falls and reserves account becomes more
negative (or less positive). b. The real risk-free interest rate rises and reserves account becomes more negative (or less positive). c. The real risk-free interest rate and reserves account remain the same. d. The real risk-free interest rate rises and reserves account remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Why are diamonds more expensive than water?
A. because the last diamond has higher marginal utility than the last glass of water B. because the last glass of water has higher marginal utility than the last diamond C. because water is a necessity D. because you get more total utility from diamonds