If a U.S. firm buys tulips from a Dutch firm and the Dutch firm uses the dollars it gets to buy U.S. stocks, the U.S. trade balance ________ and the U.S. financial account ________.
A. rises; rises
B. falls; falls
C. rises; falls
D. falls; rises
Answer: D
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The chairman of the Federal Reserve's Board of Governors
A) controls the agenda of the Federal Open Market Committee meetings. B) is the main point of contact between the Fed and the President of the U.S. C) receives frequent background briefings on monetary policy issues from a large staff of economists and technical experts. D) All of the above answers are correct.
Which of the following would increase public saving?
A) an increase in transfers B) an increase in government purchases C) an increase in taxes D) All of the above would increase public saving.
A model that is an oversimplification for one purpose will likely be an oversimplification for other purposes as well
a. True b. False Indicate whether the statement is true or false
Based on the graph showing the effective federal funds rate, in what context did the downturn in interest rates after the 2001 recession occur?
a. Interest rates were higher than they were at the start of previous downturns.
b. Interest rates were lower than they were at the start of previous downturns.
c. Interest rates were at an all-time low before the start of the downturn.
d. Interest rates were at an all-time high before the start of the downturn.