In the consumption function, suppose a = 60, c = 0.75, Y = 3000, and T = 800. Consumption expenditure is
A) 2910.
B) 2245.
C) 1710.
D) 1590.
E) 1510.
C
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All of the following statements about secondary credit are true EXCEPT
A) they are temporary, short-term loans to satisfy seasonal requirements. B) the secondary credit interest rate is set above the primary credit rate. C) it is intended for banks not eligible for primary credit. D) borrowers of secondary credit are less financially healthy.
Which of the following groups is an investment bank NOT likely to visit during a "road show"?
A) institutional investors B) individual investors C) university endowments D) mutual funds
Legal reserve requirements specify that banks must hold a certain percentage of their deposit liabilities
a. in currency only. b. as deposits at regional Federal Reserve Banks only. c. either in currency or as deposits at regional Federal Reserve Banks. d. None of the above
GDP equals $8 trillion. If consumption equals $5.5 trillion, investment equals $500 billion, and government spending equals $1.5 trillion, then:
a. exports exceed imports by $500 billion. b. imports exceed exports by $500 billion. c. net exports equal zero d. exports exceed imports by $1 trillion.