An interest rate is an example of a rate of __________.
a. inflation
b. frequency
c. return
d. employment
c. return
An interest rate is an example of a rate of return.
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Uncertainty costs arise from inflation because inflation makes long-term planning ________ so people respond by ________ investment
A) less difficult; not changing B) less difficult; increasing C) more difficult; increasing D) more difficult; decreasing E) more difficult; not changing
In the United States, health care spending per person based on income per person is ________ the average for most other countries
A) slightly lower than B) comparable to C) significantly lower than D) significantly higher than
The per capita output of an economy is likely to increase if: a. the number of workers in the economy grows faster than its population
b. the population of the country grows faster than its labor force. c. the government increases the tax rates. d. the government controls the number of illegal immigrant workers in the economy. e. the government manages the foreign investment in the economy.
Which statement about changes in the discount rate is true?
a. The discount rate is usually set lower than the federal funds rate to encourage borrowing. b. The discount rate is rarely changed because it has a huge impact on the money supply. c. The Fed can raise the discount rate to increase the money supply. d. Changes in the discount rate are seen as a signal of the Fed’s monetary policy intentions.