Because the Fed's current tool for changing the interest rate is to change the ________, once the decision has been made to make the change, ________.
A. rate it pays on bank reserves; there is in effect no implementation lag
B. rate it pays on bank reserves; the implementation lag is usually very long
C. required reserve rate; the implementation lag is usually very long
D. required reserve rate; there is in effect no implementation lag
Answer: A
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Population growth is similar to depreciation, in that ________
A) each lowers the capital-labor ratio B) each tends to encourage saving C) capital wears out faster when used by more workers D) each helps to explain how economies can sustain a positive growth rate of output
Many cellular phone rate plans are structured as a combination of ________ price discrimination
A) first-degree and second-degree B) first-degree and third-degree C) second-degree and third-degree D) peak-load pricing and third-degree
During the trough of the business cycle,
a. employment and income are at a low ebb. b. little investment in plant and equipment occurs. c. consumers postpone purchases of durable goods. d. All of these occur.
Leverage refers to:
a. an IPO b. Secondary offering c. the ratio of debt to equity d. The derivatives market e. All of the above