An indication to the Open Market Account Manager that commercial banks are experiencing a liquidity shortage would be a
A) falling federal funds rate.
B) rising federal funds rate.
C) falling discount rate.
D) rising discount rate.
B
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According to the Keynesian view, the prolonged unemployment of the Great Depression
a. was surprising because Keynesians believed that wage rates would decline and direct the economy to full employment. b. was surprising because Keynesians believed that lower interest rates would direct the economy to full employment. c. resulted because the total expenditures on goods and services were less than the full-employment rate of output. d. resulted because the federal government ran large budget deficits during the 1930s.
Which of the following statements best represents the law of supply?
A) Price and quantity supplied are inversely related. B) Price and quantity supplied are directly related. C) Price and quantity supplied are inversely related, ceteris paribus. D) Price and quantity supplied are directly related, ceteris paribus. E) Price and supply are directly related, ceteris paribus.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.
The gold standard is a type of
A. floating exchange rate system. B. flexible exchange rate system. C. barter currency system. D. fixed exchange rate system.