In response to the Great Recession of 2007–2009, when did the Federal Reserve first cut the federal funds rate to zero?
A. December 2007
B. June 2008
C. December 2008
D. January 2010
Answer: C
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Explain what would happen to the equilibrium price and quantity of pineapples if the supply of pineapples decreased while the demand for pineapples increased
What will be an ideal response?
If the interest rate is 8 percent, a person who is offered the opportunity to buy an annuity paying $30,000 per year forever should
a. do so if the price is greater than $375,000 b. do so if the price is less than $375,000 c. be willing to pay only $37,037 for it d. be willing to pay $77,037 for it e. be willing to pay no more than $300,000 for it
Buying a newly issued bond implies:
a. borrowing money from a private bank. b. taking over the ownership of the issuing firm. c. lending money to the issuing firm. d. paying the price for a service rendered by the issuing firm. e. borrowing funds from international organizations.
If both borrowers and lenders anticipate the rate of inflation correctly, then
a. borrowers will lose real income. b. lenders will lose real income. c. both borrowers and lenders will lose real income. d. neither borrowers nor lenders will lose real income.