For this question, assume that expected inflation is equal to the nominal interest rate. In this situation, which of the following is correct?
A) The real interest rate is negative.
B) The real interest rate is positive.
C) The real interest rate is higher than the nominal interest rate.
D) The real interest rate is zero.
D
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__________ plus __________ plus __________ equals ___________
a. Total deposits, loans, required reserves, excess reserves. b. Loans, required reserves, excess reserves, total deposits. c. Required reserves, total deposits, excess reserves, loans. d. Excess reserves, loans, total deposits, required reserves.
Suppose that John allocates $10,000 of his disposable income for necessities. Any additional income beyond that is both spent and saved. Assume he has a disposable annual income of $50,000 and an MPC=0.8. Based on this information the amount of money John should save would be:
A. $10,000. B. $40,000. C. $12,000. D. $8,000.
What is the Federal Reserve best known for?
(A) For setting the discount rate. (B) For the fractional reserve banking system. (C) For regulating the nation's money supply. (D) For bank examinations.
Which of the following statements is true?
A. A mineral rights auction is not the same as a common-value auction. B. An auctioneer is always indifferent between different kinds of auctions. C. An English auction always yields lower expected revenues than a second-price, sealed-bid auction. D. The Dutch and first-price, sealed-bid auctions are strategically equivalent.