Contractionary monetary policy increases the federal funds rate
Indicate whether the statement is true or false
TRUE
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An economy recovering from a recession
A) moves up from its trough to a period of expansion. B) moves up from its peak to a period of expansion. C) moves down from its trough to a period of depression. D) moves down from its peak to a period of expansion.
From 1960 to 2012
A) the U.S. economy roughly tripled in size. B) U.S. imports roughly tripled in size. C) the share of US Trade in the global economy roughly tripled in size. D) U.S. Imports roughly tripled as compared to U.S. exports. E) U.S. exports roughly tripled in size.
On January 1, 2010, a homeowner borrowed $5,000 for a term of six months to complete some home improvements, paying an annual interest rate of 8 percent. How much principal and interest will the homeowner pay back on July 1, 2010?
A. $2,500 B. $2,900 C. $5,200 D. $5,400
Suppose a new contracting environment that requires clearing fewer legal hurdles is considered. This new contract will result in:
A. an increase in the marginal cost and a shorter optimal contract. B. a decrease in the marginal cost and a shorter optimal contract. C. a decrease in the marginal cost and a longer optimal contract. D. an increase in the marginal cost and a longer optimal contract.