High interest rates contribute to a lower federal budget deficit.
A. True
B. False
C. Uncertain
B. False
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When the Fed buys government securities, it:
a. lowers the cost of borrowing from the Fed, encouraging banks to make loans to the general public. b. raises the cost of borrowing from the Fed, discouraging banks from making loans to the general public. c. increases the amount of excess reserves that banks hold, encouraging them to make loans to the general public. d. increases the amount of excess reserves that banks hold, discouraging them from making loans to the general public. e. decreases the amount of excess reserves that banks hold, discouraging them from making loans to the general public.
If a European billionaire buys stock in General Motors, then the purchase will be recorded in the:
A. European financial and capital account. B. European current account. C. U.S. government financial account. D. U.S. current account.
Which of the following statements is correct?
A. If poverty was eliminated there would be no reason to study economics. B. Economics is a natural science. C. Economic analysis can be used to explain how societies, but not individuals, make decisions. D. In large measure, economics is the study of how people make choices.
The bulk of the decline in the natural rate of unemployment from 1980 to 2000 is because of
A. increased competition from foreign workers. B. the depreciation of the dollar relative to foreign currencies. C. a decline in the inflation rate. D. a decline in the share of young workers in the labor force.