As the world economy becomes more integrated through globalization
A) the Fed will find it easier to conduct monetary policy.
B) the Fed will have a more difficult time reaching its money supply growth rate targets.
C) the Fed will rely less on open market operations and more on changing the required reserve ratio when conducting monetary policy.
D) U.S. interest rates will determine world interest rates.
B
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The pure interest yield
a. reflects the expectation that the loan will be repaid with dollars of less purchasing power. b. is the real price one must pay for earlier availability. c. reflects the probability of default. d. is the real rate of return one could expect if the funds were invested in the commodities market.
Changes in autonomous consumption could be the result of:
A. changes in inflation. B. changes in housing prices. C. changes in the mpc. D. changes in disposable income.
The government's budget deficit or surplus equals the...
a) change in outlays divided by change in revenue b) average outlay divided by average revenue c) change in revenue minus change in outlays d) total tax revenue minus total government outlays
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________.
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C