Use the following graph for the federal funds market to answer the next question.
A $25 billion increase in reserves will change the interest rate to ________.
A. 3.5%
B. 4.0%
C. 3.0%
D. Undeterminable with the provided information.
Answer: D
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Which might be a possible reason a cable television operator want to bundle channels together in packages ("tiers")?
a. delivering many channels to the consumer is not much more costly than delivering a few. b. simplifies the consumer's choice and perhaps lowers administrative costs. c. allows the firm to extract revenue from a consumer even if it does not know exactly which channels the consumer likes the most.. d. all of the above.
A(n) _____ is the benefit or a cost of an activity that affects third parties
Fill in the blank(s) with the appropriate word(s).
An increase in the budget deficit causes domestic interest rates
a. and net capital outflow to rise. b. to rise and net capital outflow to fall. c. to fall and net capital outflow to rise. d. and net capital outflow to fall.
If the output gap equals ?3.2 percent, then:
A. potential GDP is lower than actual GDP. B. there is no cyclical unemployment. C. cyclical unemployment equals the sum of structural and frictional unemployment. D. there is a recessionary gap.