The discount rate is the rate that the
a. Treasury pays on savings bonds.
b. Fed charges member banks.
c. Fed charges on government securities.
d. Fed charges the Treasury for sales of securities.
b
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Suppose that the free market exchange rate for the dollar is 115 yen, but the U.S. and Japanese governments want it to be 120 yen/dollar. What can the governments do? Illustrate your answer with a graph
What will be an ideal response?
In one week, Mohammed can knit 5 sweaters or bake 240 cookies. In one week, Tetah can knit 15 sweaters or bake 480 cookies. In this example,
a. Mohammed has the absolute and comparative advantage in both tasks b. Tetah has the absolute and comparative advantage in both tasks c. Mohammed has the absolute advantage in both tasks and the comparative advantage in knitting sweaters d. Tetah has the absolute advantage in both tasks and the comparative advantage in knitting sweaters e. Mohammed has the absolute advantage in both tasks and the comparative advantage in baking cookies
During the 1997-1998 Asian financial crisis, Thailand tried to defend its fixed exchange rate for the Thai baht and eventually ran out of foreign currency reserves
a. True b. False
If money income doubles and the prices of all goods triples, then the:
A. consumer is worse off due to inflation. B. budget line will shift out. C. consumer will buy more of normal goods. D. budget line remains unchanged.