The "secondary credit" of the discount rate is usually lower than the "primary credit," because it is intended for banks in good financial condition
a. True
b. False
Indicate whether the statement is true or false
False
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The covered interest rate parity condition can be stated as follows: The interest rate on dollar deposits equals the interest rate on euro deposits ________ the forward ________ on euros against dollars
A) plus; premium B) minus; premium C) plus; discount D) minus; discount E) times; premium
The paradox of thrift tells us that even though people try to save more, they end up saving
a. no more than they did before and maybe even less depending on the shape of the investment curve b. no more than they did before and maybe even less depending on the shape of the consumption curve c. no more than they did before and maybe even less depending on the shape of the saving curve d. no more than they did before and maybe even less depending on the shape of the national income curve e. even more than they anticipated because thrift is always good
In the Keynesian model, suppose the Fed sets a target for the real interest rate. If the IS curve shifts to the left, and the Fed wants to keep output unchanged,
A. taxes will decrease. B. the real interest rate will decrease. C. taxes will increase. D. the money supply will decline.
An example of a variable factor of production in the short run is
A) a building. B) capital equipment. C) an employee. D) land.