If financial intermediaries charge a higher rate of interest to lenders than they pay to borrowers, then
a. investing with borrowed funds involves a higher opportunity cost than investing with savings
b. investing with saving involves a higher opportunity cost than investing with borrowed funds
c. a firm is charged less interest to borrow than it can earn on savings
d. the opportunity cost of investing with borrowed funds equals the opportunity cost of investing with savings
e. a firm does not consider the market rate of interest when it makes investment decisions
A
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Hyperinflation is caused by
A) the money supply growing more slowly than GDP. B) Real GDP growing more rapidly than the money supply. C) a constant increase in the money supply. D) a high rate of growth in the money supply.
The research document given to the Federal Open Market Committee that contains information on the state of the economy in each Federal Reserve district is called the
A) beige book. B) green book. C) blue book. D) black book.
In recent decades, international trade has been
a. a constant percentage of U.S. GDP b. a declining fraction of U.S. GDP c. an increasing fraction of U.S. GDP d. declining as measured by total dollars spent e. constant as measured by total dollars spent
If equilibrium is present in a market: a. there is either a shortage or a surplus
b. the quantity demanded equals quantity supplied. c. the quantity demanded exceeds quantity supplied. d. the quantity supplied exceeds quantity demanded.