Most of the Fed's assets are held in the form of loans to its member banks
a. True
b. False
Indicate whether the statement is true or false
False
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The following table provides data for an economy in a certain year. Consumption expenditures1,000Imports600Government purchases of goods and services700Construction of new homes and apartments500Sales of existing homes and apartments600Exports500Government payments to retirees200Household purchases of durable goods300Begining-of-year inventory500End-of-year inventory600Business fixed investment300Given the data in the table, compute the value of GDP.
A. 2,700 B. 2,400 C. 2,500 D. 2,600
If Bulgaria, for instance, wished to keep its exchange rate with the dollar fixed, what monetary policy options are available to lower unemployment in the short run?
a. Bulgaria has all the options available to it, because domestic monetary policy is conducted inside the nation and has no bearing on its international variables. b. Traders would realize that any monetary policy actions taken inside a nation would improve economic conditions without affecting international variables. c. Bulgaria cannot use any monetary policy that would cause its short-run exchange rate to depreciate against the dollar. d. Bulgaria's monetary action would restore confidence and help keep its currency stable.
Explain why a forward contract may actually carry more risk than a futures contract.
What will be an ideal response?
The effect of spreading out the fixed costs outweighing the effect of diminishing returns is illustrated by the ________ average cost curve ________.
A. long-run; decreasing B. long-run; increasing C. short-run; decreasing D. short-run; increasing