Which statement is true?
a. The prime interest rate will be higher than the Federal funds rate
b. The Federal funds rate and the prime interest rate will be the same
c. The Federal funds rate will be higher than the prime interest rate
d. The prime interest rate will be the same as the discount rate
a. The prime interest rate will be higher than the Federal funds rate
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When a German company purchases a U.S. company for $20 million, in the balance of payments the value of that transaction is recorded in the
A) current account. B) investment account. C) official purchases account. D) capital and financial account. E) purchase account.
The Fed's forward guidance in 2011 and early 2012 was framed in terms of keeping interest rates low
A) for an extended period. B) at least until a particular date in the future. C) based on outcomes for the unemployment rate and inflation rate. D) until the next Presidential election.
During a mild winter, the price of home heating oil is expected to be less than it would be during a normal winter
What will be an ideal response?
Which of the following statements about a monopolistically competitive firm is FALSE?
A) It tries to differentiate its product from that of competitors. B) It may earn short-run economic profits. C) It produces the quantity at which MC=MR. D) It sets price like a perfectly competitive firm.