A borrowed reserves target is ________ because increases in income ________ interest rates and discount loans, causing the Fed to ________ the monetary base, everything else held constant
A) procyclical; increase; increase
B) countercyclical; increase; increase
C) procyclical; reduce; reduce
D) countercyclical; reduce; reduce
A
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If the domestic income of a nation's citizens increase thus causing consumption spending to increase, then we generally expect net export spending to:
A. remain constant because when we increase domestic purchases it is directly offset by a reduction in foreign purchases. B. decrease as well because as consumption increases we also buy more foreign goods and services. C. increase as well because as consumption increases we also buy more foreign goods and services. D. there is not enough information to determine what would happen.
In 1995 ________, which was established in 1948, was replaced by ________
A) the GATT; the WTO B) the WTO; NAFTA C) the Smoot-Hawley Tariff; the GATT D) NAFTA; the Smoot-Hawley Tariff
The goal of the firm, according to economists, is to
A. make as much economic profit as is possible. B. grow as large as possible. C. sell as many units of the good it produces as possible. D. stay in business for as long as possible.
Most economists
A. favor tariffs. B. favor quotas. C. advocate "fair trade." D. Economists do not favor any of these.