When the interest rate increases, people will adjust their precautionary demand for money
A) downward or upward depending upon the actual supply of money.
B) upward.
C) not at all.
D) downward.
D
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Unemployment caused by a business cycle recession is called cyclical unemployment
Indicate whether the statement is true or false
Under the Patient Protection and Affordable Care Act (ACA), individuals who do not have health insurance will be subject to a fine
Indicate whether the statement is true or false
Endogenous growth theory attempts to
A) replace the Solow model with a model in which money growth plays a key role. B) explain how societies can more easily reach the "Golden Rule." C) show how population growth reduces capital and output. D) explain why productivity changes.
The main difference between a repo and federal funds transaction is that
A) the repo transaction uses the securities for collateral while the federal funds transaction does not have collateral. B) the federal funds transaction uses securities for collateral while the repo transaction does not have collateral. C) the repo transaction has an agreed upon interest rate while the federal funds transaction has a spread between the sale and purchase price of securities. D) the federal funds transaction is normally overnight while the typical repo agreement is for 90 to 180 days.