Answer the following statements true (T) or false (F)
1. If the Fed sells $10 million in government securities to commercial banks, the size of the effect on the banks' excess reserves is not the same as if the Fed sold the securities to the public instead.
2. When commercial banks borrow from the Federal Reserve Banks, they decrease their excess reserves and their money-creating potential.
3. The Federal funds rate is the rate that banks charge other banks for overnight loans of excess reserves.
4. If the Fed seeks to maintain a fixed targeted interest rate, then it will have to increase the money supply when the demand for money increases as income increases.
5. If the Fed is targeting a lower federal funds rate, then it is pursuing a restrictive monetary policy.
1. True
2. False
3. True
4. True
5. False
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Between 1960 and 1997, the federal budget was never in surplus
a. True b. False Indicate whether the statement is true or false
Gross domestic product measures the:
a. wholesale value of all goods and services produced by U.S. owned corporations. b. market value of all final goods and services produced during a year by resources located in the United States. c. initial production value of foreign and Untied States owned corporations who pay taxes in the United States. d. aggregate consumer purchases of goods and services sold in a year in the United States.
During the past quarter of a century, the world's extreme poverty rate (per capita income of less than $1.25 per day) has
What will be an ideal response?
If ________, then a profit-maximizing, monopolistically competitive firm earns negative economic profits.
A. P < ATC B. P = ATC C. P > ATC D. All of the above are possible.