Which of the following is an administered interest rate set by the Federal Reserve?
A) The discount rate
B) The federal funds rate
C) The prime rate
D) The commercial paper rate
A
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When banks and other financial institutions become insolvent, ________
A) the problem of asymmetric information becomes more acute B) it is easier to distinguish the good creditors and borrowers from the bad C) surviving creditors will attract borrower-spenders by lowering the real interest rate D) the resulting increase in short-run aggregate supply will discourage investment
In the above figure, suppose the economy is initially at a short-run equilibrium at point D and there is an unanticipated increase in the money supply. Which point represents the new short-run equilibrium?
A) A B) B C) C D) D
Assume that the central bank increases the reserve requirement. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?
a. The GDP Price Index falls, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). b. The GDP Price Index rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). c. The GDP Price Index falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). d. The GDP Price Index and net nonreserve-related international borrowing/lending remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Which of the following would be directly counted in GDP in 2018?
A) kitchen cabinets purchased from Home Depot in 2018 to be installed in a house built in 1997 B) kitchen cabinets built in 1887, extracted from the 1887 home, and installed in a brand new country-style home C) kitchen cabinets built in 1887, extracted from the 1887 home, and installed in a farm house built in 1950 D) none of the above