The required reserve ratio for a bank is set by:
a. Congress.
b. the bank itself.
c. the Treasury Department.
d. the banking system.
e. the Federal Reserve.
e
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In an economy, the value of inventories was $75 billion in 2009 and $63 billion in 2010. In calculating total investment for 2010, national income accountants would ________.
A. increase it by $138 billion B. increase it by $63 billion C. decrease it by $12 billion D. decrease it by $75 billion
Why did the monetary base increase rapidly during the economic crisis of 2008?
a. The Fed purchased more assets and extended more loans. b. The Fed sold financial assets and extended fewer loans. c. The Fed purchased more assets, but extended fewer loans. d. The Fed sold financial assets, but extended more loans.
Hudson Manufacturing is an MNE based in the United States with operations in Asia. The firm is considering expansion into the European Union. Which of the following questions is most relevant to the decision?
A) What is the primary language of most workers? B) Which country has the best production location? C) Which currency has the most favorable value of the euro? D) Which country has the lowest tariffs for manufactured products?
If the demand effect dominates during a currency depreciation, then
A. real GDP should fall. B. real GDP should increase. C. the price level should fall. D. net exports should decrease.