The Fed can enhance liquidity in the U.S. economy by increasing the federal funds rate
a. True
b. False
Indicate whether the statement is true or false
False
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Distinguish between a horizontal merger and a vertical merger
What will be an ideal response?
Suppose that Canada pegs its currency to the U.S. dollar at a rate of $C1 = $US1 and that Canada is a major exporter of crude oil to the United States. The increase in the price of oil that occurred in the second half of 2007 is likely to:
A) cause Canada to adopt a contractionary monetary policy and the United States to adopt an expansionary monetary policy. B) cause Canada to adopt an expansionary monetary policy and the United States to adopt a contractionary monetary policy. C) cause both Canada and the United States to adopt contractionary monetary policies. D) cause both Canada and the United States to adopt expansionary monetary policies.
A shift from i1 to i2 in graph 1 leads directly to which of the following in graph 2?
a. a shift from PL2 to PL1
b. a shift from MD2 to MD1
c. a shift from RGDP1 to RGDP2
d. a shift from RGDP2 to RGDP1
The formula for present discounted value is ________, where R dollars is to be paid t years in the future and the agreed upon interest rate is r.
A. (1 + r)t/R B. (1 + r)/Rt C. R/(1 + r)t D. R(1 + r)t