The zero lower bound on the nominal interest rate arises because
A) if the nominal interest rate were less than zero, an arbitrage opportunity would exist.
B) bank profits must be zero.
C) the government would not allow it.
D) the economy would crash.
A
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During George W. Bush's presidency
A. the job market was quite robust. B. The United States' federal budget deficit hit a record high. C. the federal budget surpluses in the last years of the Clinton presidency continued. D. we experienced a very high inflation rate.
Open market operations refer to the purchase or sale of ________ by the Federal Reserve in order to influence the money supply
A) U.S. government bonds B) corporate bonds and stocks C) foreign currency D) commodities
How does the federal government raise revenue? What is the largest source of revenue for the federal government? Do state governments also raise revenue from the same sources as the federal government?
What will be an ideal response?
Bond coupon payments represent
A) dividends paid to owners. B) interest on the amount borrowed. C) capital gains for tax purposes. D) payments to preferred shareholders.