Lowering the discount rate has the effect of ________.
A. forcing commercial banks to call in outstanding loans from their best customers
B. turning required reserves into excess reserves
C. turning excess reserves into required reserves
D. making it less expensive for commercial banks to borrow from central banks
Answer: D
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Assume that Nation X can produce either 40 notepads or 80 pens, and that Nation Y can produce either 10 notepads or 40 pens. This implies that
A. Nation X has a comparative advantage in producing pens. B. Nation Y has a comparative advantage in producing notepads. C. Nation Y is the high-cost producer of pens. D. Nation X has a comparative advantage in producing notepads.
Which of the following is NOT considered to be a benefit of unionism?
A) increased featherbedding B) greater workplace safety C) higher workforce stability D) provision of arbitration and grievance procedures
An increase in the supply of loanable funds will ___________ interest rates.
A. raise B. lower C. not effect
Suppose that the United Kingdom pegs the pound to the euro. If all other things remain unchanged, what would you expect to happen to European interest rates if all countries who use the euro decided to adopt expansionary fiscal policies?
A) They would rise. B) They would fall. C) They would not change. D) That cannot be determined using the information provided.