Macroeconomic variables that the Fed cannot control directly but can influence fairly predictably, and which are related to the Fed's goals, are known as
A) instruments.
B) tools.
C) intermediate targets.
D) initial targets.
C
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The average income per capita of a country in its own currency is 75,000 units. If one US dollar is worth 20 units of its currency, the income per capita of the country in dollars is ________
A) $1,850 B) $15,000 C) $3,750 D) $2,500
When the ownership of the different stages of production of a commodity lies with different individuals, it becomes difficult to take decisions on capacity expansion because of all the following reasons, EXCEPT:
a. differences in attitudes toward risk. b. differences in motivation. c. different degrees of risk exposure. d. different abilities to hedge themselves.
If you were the Chairman of the Fed and faced inflation, you would most likely
a. encourage commercial banks to provide loans by buying government securities b. encourage commercial banks to provide loans by raising the discount rate c. encourage commercial banks to provide loans by selling government securities d. restrict commercial bank lending by selling government securities e. restrict commercial bank lending by lowering the federal funds rate
Economist Jeffrey Sachs' big push theory involves:
A. giving a one-time large amount of aid upfront, ending the need for future aid. B. developed nations concertedly pushing developing nations into following certain beneficial policies. C. a concerted effort in many areas to break the poverty trap. D. developed nations pushing away less developed nations as trading partners because in general less developed nations cannot offer any benefits to developed nations.