The time it takes the firms to respond to a higher or a lower interest rate is referred to as:
A. the inside lag for monetary policy.
B. the inside lag for fiscal policy.
C. the outside lag for monetary policy.
D. the outside lag for fiscal policy.
Answer: C
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Which of the following is NOT an asset of a bank?
A) Cash equivalents of the bank B) Stockholders' equity C) Long-term investments made by the bank D) Official bank reserves
Refer to Scenario 1-1. Using marginal analysis terminology, what is another economic term for the incremental revenue received from the sale of the last 3,000 cell phones?
A) marginal revenue B) gross profit C) sales revenue D) gross earnings
Refer to Figure 26-2. In the figure above, the movement from point A to point B in the money market would be caused by
A) a decrease in the required reserve ratio by the Federal Reserve. B) a decrease in real GDP. C) an increase in the price level. D) an open market sale of Treasury securities by the Federal Reserve.
Mutual savings banks are owned by
A) shareholders. B) partners. C) depositors. D) foreign investors.