Your text considers both the low savings and high savings nations and concludes what about the relationship between government budgets and the current account?
What will be an ideal response?
The relationship isn't fixed. One does not cause the other in any necessary form.
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When the Fed conducts an open market purchase, the first round changes in the money creation process are that excess reserves ________, bank deposits ________, and the quantity of money ________
A) decrease; increase; does not change B) do not change; increase; increases C) increase; increase; increases D) increase; do not change; increases E) decrease; decrease; decreases
The discount rate:
A. is the rate of interest charged by the Fed when it lends money to private banks. B. is the reduction in the prime rate that big banks provide to corporate borrowers. C. is always equal to the market rate minus the core rate of inflation. D. is the rate that private banks charge other private banks for a loan.
Suppose that the slope of a line tangent to the total cost curve at point X is steeper than the slope of a line tangent to the total benefit curve at point X, then:
A. net benefit would be increased by reducing the amount of the activity. B. net benefit would be decreased by reducing the amount of the activity. C. net benefit would be increased by increasing the amount of the activity. D. net benefit is maximized.
Economic policy in the real world reflects:
A. special interest desires only. B. a balancing of cost/benefit analysis and special interest desires. C. cost/benefit analysis only. D. a complete lack of understanding of the principles of economics.