How long does it take for the rate to adjust when the Fed announces a change to its target for the federal funds rate?
A. The rate never fully adjusts because the Fed announces planned changes so frequently.
B. Sometimes it adjusts before the Fed even takes any action.
C. It can take several days or weeks for rates to fully adjust to announced changes from the Fed.
D. The rate usually adjusts immediately after the Fed takes action to change the rate.
Ans: B. Sometimes it adjusts before the Fed even takes any action.
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Deciding how a society's products are distributed among its citizens answers the economic question of
A) how will the products be produced. B) where will the products be consumed. C) what products will be produced. D) who consumes the products produced.
The base year is 2012. A country only produces Blu-ray players. The price of a Blu-ray player in 2012 was $100. The price of a Blu-ray player was $90 in 2013
The quantity of Blu-ray players produced in 2012 was 10,000 units and in 2013 was 10,500 units. Real GDP in 2012 equals A) $945,000. B) $1,000,000. C) $900,000. D) $1,050,000. E) an amount that cannot be determined without information about real GDP in 2007 .
"Government should impose stricter regulations on oil drilling" is an example of a
A) normative statement. B) positive statement. C) negative statement. D) normal statement.
Figure 36-6
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In Figure 36-6, an expansive fiscal policy in a closed economy results in an equilibrium at point E. In an open economy, allowing for the effects of the induced change in the currency value, the final equilibrium would be point
A. B. B. F. C. J. D. H.