The full-employment unemployment rate for the United States economy is now generally considered to be:
A. 2 percent of the labor force
B. 4 percent of the labor force
C. 5 to 6 percent of the labor force
D. 8 to 9 percent of the labor force
C. 5 to 6 percent of the labor force
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The difference of rate-sensitive liabilities and rate-sensitive assets is known as the
A) duration. B) interest-sensitivity index. C) rate-risk index. D) gap.
The National Industrial Recovery Act (1933)
(a) did not permit businesses to set prices and production quotas. (b) established three advisory boards composed of government, Webb-Pomerene firms and members of the Federal Reserve System. (c) was thrown out by the Supreme Court in May 1935. (d) prohibited collective bargaining.
Suppose that you are a bank manager, and the Federal Reserve raises the required reserve ratio from 10% to 12%. What actions would you need to take?
A. You would have to reduce lines to make up for the necessary increase in reserves B. You would need to make loans to match the new reserve requirement C. You would have to charge less for your loans because rates are now at 12%
Braun and Evans found that
A. professional forecasters have rational expectations of inflation. B. electricity use by producers rises sharply in economic upturns. C. shocks to fiscal policy are the main source of business cycle fluctuations. D. the measured Solow residual varied sharply over the seasons.