Changes in the federal funds rate influence the economy's growth rate through all of the following except by:
A. making it more or less expensive to borrow.
B. making investment spending more or less attractive.
C. altering the real interest rate when inflation is changing quickly.
D. making it more or less attractive to people save.
Answer: C
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If the supply of dollars in the market for foreign-currency exchange shifts right, then the exchange rate
a. rises and the quantity of dollars exchanged falls. b. rises and the quantity of dollars exchanged does not change. c. falls and the quantity of dollars exchanged rises. d. falls and the quantity of dollars exchanged does not change.
Good weather in wheat-producing regions of the world increased the wheat crop. As a result, wheat prices decreased worldwide. Which of the following statements best explains the situation?
a. The supply of wheat increased b. The demand for wheat decreased c. The demand for wheat decreased and the supply of wheat decreased d. The demand for wheat increased and the supply of wheat increased
An upward-sloping straight line on a linear scale will become a (an) ________ on a logarithmic scale
A) upward sloping straight line B) upward sloping curve that gets continually steeper C) upward sloping curve that gets continually flatter D) horizontal line E) downward sloping straight line
What percentage of American families pay more payroll tax than they pay in income tax?
A. 40. B. 60. C. 75. D. 80.