The market in which banks lend and borrow reserves from each other for very short periods of time (usually overnight) is the
a. federal funds market
b. bond market
c. asset based market
d. reserve market
e. open operations market
A
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Which of the following is a feature of a good theory?
A) A good theory does not rely on data. B) A good theory cannot be tested with data. C) A good theory is free from approximations. D) A good theory closely predicts actual behavior.
If three paper product companies are in an agreement, this is an example of a ________ agreement.
A) leftward B) horizontal C) rightward D) vertical
If global pollution causes climatic changes that permanently harm crop production worldwide, aggregate supply and demand analysis would lead us to expect: a. an increase in the price level
b. a decrease in the price level. c. rightward shifts of the aggregate demand and aggregate supply curves. d. a leftward shift of the aggregate demand curve. e. an increase in the potential level of real GDP.
When tax code changes reduce investment incentives, the _____ for loanable funds curve shifts to the _____. This results in a(n) _____ in the interest rate and a(n) _____ in investment
Fill in the blank(s) with correct word