The federal funds rate is the short-term interest rate that banks charge one another for loans.
Answer the following statement true (T) or false (F)
True
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Suppose the actual budget deficit remains unchanged when the economy falls into a recession. This is an indication that
A) fiscal policy was used during the recession. B) monetary policy was not used during the recession. C) fiscal policy was not used during the recession. D) monetary policy was used during the recession.
If the money supply grows at 6% and the inflation rate is 2%, the quantity theory predicts that the change in real GDP will be
A) 0.33%. B) 3%. C) 4%. D) 8%.
If nominal GDP increased from $4,500 billion in 2010 to $5,000 billion in 2011 and the GDP deflator increased from 100 to 105 over the same time period, what would the 2011 real GDP equal expressed in terms of 2010 dollars?
a. $4,285 billion b. $4,500 billion c. $4,725 billion d. $4,762 billion
The output level attained by a perfectly competitive firm in the short run, where price equals average total cost is called the break-even point
Indicate whether the statement is true or false