The balance of payments improves
A) when there is an exchange rate appreciation.
B) when there is an exchange rate depreciation.
C) when the interest rate rises.
D) never.
D
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The discount rate is the
A) banks' real interest rate. B) interest rate at which the Fed will loan reserves to commercial banks. C) interest rate banks charge the Fed when the Fed borrows from the banks. D) name of the interest rate banks charge their most credit-worthy borrowers. E) interest rate paid on U.S. government securities.
The relationship between two variables, x and y, is a vertical line. Thus x and y are
A) positively correlated. B) negatively correlated. C) not related. D) falsely related.
The Federal Trade Commission is responsible for enforcing
A. interstate commerce. B. health care. C. antitrust law. D. communications law.
Answer the following statement true (T) or false (F)
1) Unlike most demand curves, the demand curve for loanable funds is upsloping. 2) Present value is the amount to which some current amount of money will grow as interest compounds over time. 3) The time-value of money refers to the idea that a given amount of money is more valuable to a person the sooner it is received. 4) The future value of $3,000 deposited today at 5 percent interest is $3,646.52 four years from now. 5) The present value of $4,000 deposited today at 8 percent interest is $5,038.85 three years from now.