A rise in the federal funds rate _________ reserves and _________ the quantity of deposits and bank loans created.
Fill in the blank(s) with the appropriate word(s).
decreases; decreases
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A nation will export a good if its
A) no-trade, domestic price is less than the world price B) no-trade, domestic price is equal to the world price. C) no-trade, domestic price is greater than the world price. D) no-trade, domestic quantity is less than the world quantity. E) no-trade, domestic quantity is greater than the world quantity.
A mid-size firm may have a "__________" line of credit, meaning all or part of it can be converted into an intermediate-term loan
A) revolving B) secured C) guaranteed D) mezzanine
A production function shows the
A. Maximum quantity of inputs required to produce a given quantity of output. B. Output capacity of the entire economy. C. Minimum amount of output that can be obtained from alternative combinations of inputs. D. Maximum output of a good attainable from different combinations of factor inputs.
A period of expansion in the business cycle ends when
A) real GDP is equal to potential GDP. B) the business cycle reaches its peak. C) the business cycle reaches its trough. D) real GDP is less than potential GDP.