Financial markets pay close attention to changes in the federal funds rate because these changes:
A. indicate commercial bank lending policies.
B. directly affect a large volume of loans.
C. directly affect the interest payments on the national debt.
D. indicate the Fed's plans for monetary policy.
Answer: D
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Explain the difference between nominal GDP and real GDP. Which is more important when using GDP as a measure of production? Why?
What will be an ideal response?
A successful and stable cartel can be established if there are
A) many firms producing a storable product. B) many firms producing a perishable product. C) a few firms producing a storable product. D) a few firms producing a perishable product.
Fixed exchange rates require the economic policies of countries linked by the exchange rate to be:
a. completely independent. b. complementary to each other. c. determined by the World Bank. d. similar in nature. e. determined by the International Monetary Fund.
If a determinant of demand other than price changes, the demand curve shifts
a. True b. False Indicate whether the statement is true or false