Greater central bank independence is positively related to ________
A) a low rate of unemployment
B) the length of terms of Governors on the Board of Governors
C) a higher level of GDP
D) the ability to fight inflation
D
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The figure above shows the demand for fruit snacks. Which movement reflects a decrease in demand?
A) from point a to point e B) from point a to point b C) from point a to point c D) from point a to point d
Risk Premium refers to
A) the average difference over a long period of the interest rate on long-term bonds and the interest rate on the short-term federal funds rate. B) the average difference over a long period of the interest rate on short-term financial instruments and the interest rate on the discount rates. C) the difference between the corporate bond rate and the risk-free rate of Treasury bonds. D) the difference between prime rate and the discount rate.
Using economic analysis to help understand world issues
a. assumes that all decision makers use detailed economic analysis b. highlights the role of choice when resources are scarce c. has unlimited application d. is not appropriate because reality is too complex for economic modeling e. typically enables one nation to gain only when another nation loses
Monetary regimes
A. allow the greatest policy flexibility. B. follow the Taylor rule. C. involve feedback rules. D. are created to undermine expectations.