How is the federal funds rate determined in the market for reserves?
What will be an ideal response?
The federal funds rate is determined by equilibrium in the reserve markets. The federal funds rate is the rate that sets the quantity of reserves demanded equal to the quantity of reserves supplied.
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The interest payment on a bond is called a face value payment
Indicate whether the statement is true or false
What is unemployment compensation?
What will be an ideal response?
One of the reasons fiscal and monetary policy can stimulate output and employment in the short run is that nominal wages increase faster than the price level
a. True b. False Indicate whether the statement is true or false
If foreign firms send profits back to their industrial countries from the developing countries, developing countries will have a larger deficit on their balance of payments accounts
a. True b. False Indicate whether the statement is true or false