For a country with a fixed exchange rate, foreign exchange reserves are
A) an asset of the domestic government.
B) a liability of the domestic government.
C) held by private banks.
D) are unnecessary.
A
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Suppose the Fed increases the money supply. As a result of this, people deposit excess funds into their bank accounts, causing banks to have excess reserves
As a result, the banks lower the interest rates that they charge on loans, and investment rises, causing an increase in aggregate spending. This is known as a(n) A) direct effect of monetary policy. B) indirect effect of monetary policy. C) direct effect of fiscal policy. D) indirect effect of fiscal policy.
If the price level is falling, the economy is experiencing
a. creeping inflation b. stagflation c. disinflation d. inflation e. deflation
List and discuss the importance of the major effects of the deregulation that occurred in the 1980s.
What will be an ideal response?
Members of the Board of Governors of the Federal Reserve are appointed by the President and approved by the Senate to serve a 14-year term
Indicate whether the statement is true or false