Finance companies ________
A) acquire access to funds by accepting deposits then using these monies to lend to households and firms
B) raise funds by selling commercial paper then lend these funds to consumers
C) acquire access to monies through the payment of premiums by employees
D) are a special type of mutual fund
B
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Investment in human capital implies:
a. investment on machines, technological development, and equipments. b. expenses on education. c. expenses on paying interest for hiring real capital. d. expenses on the purchase of land. e. profit of the entrepreneurs.
If the fluctuations in the economy’s real growth rate from year to year are caused primarily by variations in the rate at which aggregate demand increases, then data would show
A. a cyclical relationship between inflation and unemployment. B. a direct relationship between inflation and unemployment. C. an inverse relationship between inflation and unemployment. D. no relationship between inflation and unemployment.
Suppose the federal funds rate is 5 percent. If the Fed decides to increase the target for the federal funds rate from 5 percent to 6 percent, it could take:
A. an offensive action and reduce reserve requirements. B. an offensive action and raise reserve requirements. C. a defensive action and raise reserve requirements. D. a defensive action and reduce reserve requirements.
Economists define the labor force to include
A. people who are not working but are actively looking for a job, and people who are working. B. all individuals of work age, regardless of whether they are working or looking for a job. C. only people who are working full-time. D. people who are working.