In general, the fed funds rate
A) moves in the direction suggested by the Taylor rule.
B) moves in the opposite direction as suggested by the Taylor rule.
C) is uncorrelated with the Taylor rule prediction.
D) None of the above.
A
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Financing accounts receivable and inventory is known as
A) capital financing. B) working capital financing. C) long-term financing. D) equity financing.
The market demand curve for a monopolist is typically
a. unit price elastic. b. downward sloping. c. horizontal. d. vertical.
Government purchases include all of the following except:
A. the purchase of new military hardware by the U.S. Army. B. the construction of a new court house built by a county government. C. Social Security benefits paid by the federal government. D. the salary paid to an elementary school teacher employed by a local public school district.
Which of the following would be counted as investment when calculating gross domestic product?
a) the purchase of a used computer by an auto manufacturer b) the purchase of a share of IBM stock by an employee c) the construction of a new house d) the construction of roads by the government e) the profit earned when selling shares of stock