If funds are being loaned from one commercial bank's excess reserves on deposit with the Federal Reserve to another commercial bank's deposit account at the Fed, the transaction is taking place in:
a. the discount market.
b. the currency exchange market.
c. the federal funds market.
d. the open market.
e. the reserves market
c
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Black markets that operate outside the legal system are often characterized by
a. low profits for suppliers. b. lower opportunity costs for suppliers and buyers. c. decreased prices. d. the use of violence as a means of settling disputes.
When the economy is operating at an output rate less than full-employment capacity,
a. a strong demand for resources will cause resource prices to rise. b. actual unemployment will be less than the natural rate of unemployment. c. the rate of inflation will tend to rise. d. weak demand for investment will place downward pressure on real interest rates.
Gross Domestic Product is best defined as
A. the total market value of all final goods and services that exist in an economy at a given point in time. B. the total market value of all intermediate goods and services produced during a year by factors of production located within a nation's borders. C. the value added to all goods produced in an economy during a year. D. the total market value of all final goods and services produced during a year by factors of production located within a nation's borders.
Trade adjustment assistance:
A. provides financial assistance to all unemployed workers in the United States. B. guarantees jobs for all workers displaced by imports or plant relocations abroad. C. provides assistance to about 20 percent of unemployed U.S. workers each year. D. provides cash assistance for workers displaced by imports or plant relocations abroad.