Why does the Federal Funds rate face a zero bound?
What will be an ideal response?
Banks can always hold cash, which pays zero interest; therefore they will never choose to lend their reserves at a negative nominal interest rate.
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What is microfinance?
What will be an ideal response?
A perpetuity for sale at $100,000 that promises a yearly payment of $5,000 has an effective yield of
A) 2%. B) 5%. C) 20%. D) 50%. E) 2,000%.
The three curves in the above figure are
A) (1 ) the long-run aggregate supply curve, (2 ) the aggregate demand curve, and (3 ) the short-run aggregate supply curve. B) (1 ) the long-run aggregate supply curve, (2 ) the short-run aggregate supply curve, and (3 ) the aggregate demand curve. C) (1 ) the short-run aggregate supply curve, (2 ) the aggregate demand curve, and (3 ) the long-run aggregate supply curve. D) (1 ) the aggregate supply curve, (2 ) the short-run aggregate demand curve, and (3 ) the long-run aggregate demand curve.
Artificial intelligence (AI) refers to creating and using intelligent machines that work and react like humans.
Answer the following statement true (T) or false (F)