The interest rate that banks charge other banks for short-term loans is the:
a. discount rate.
b. prime rate.
c. treasury rate.
d. federal funds rate.
e. interbank rate.
d
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A country's balance of trade must be balanced.
Answer the following statement true (T) or false (F)
A country on a gold standard was able to maintain people's confidence in the value of its currency by:
a. printing more and more paper money. b. restricting international exchange of goods and services. c. ensuring the convertibility of paper money into gold. d. maintaining a fixed stock of foreign currencies. e. ensuring balance of payment surplus.
Neither monetary policy nor any government policy can change the natural rate of unemployment
a. True b. False Indicate whether the statement is true or false
Which of the following is the most realistic example concerning economic policy?
a. An economist accurately predicts how unemployment rates will change next year. b. An economist knows if the money supply increases 3 percent, interest rates will decrease 3 percent. c. An economist predicts the exact effect an expansionary policy will have. d. An economist believes interest rates will increase next year but is not absolutely sure.