If the Fed raises the discount rate, it:
a. forces commercial banks to call in existing loans.
b. changes excess reserves into required reserves.
c. changes required reserves into excess reserves.
d. none of the above
d
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Name the two international institutions that have been formed to attain higher rates of global economic growth and briefly discuss what each of the agencies does
What will be an ideal response?
In calculating accounting profit, accountants typically don't include
a. long-run costs. b. sunk costs. c. explicit costs of production. d. opportunity costs that do not involve an outflow of money.
Business cycles are generally considered in:
A. the long-run framework. B. both the short-run and long-run frameworks. C. the short-run framework. D. neither the short-run nor the long-run frameworks.
Which of the following is FALSE?
A. The classical economists relied on market forces to create full employment. B. Keynes advocated an active government role for curing a recession. C. Keynes suggested that full employment was a "rare and short-lived occurrence". D. The classicals believed demand created its own supply.