The actions that the Federal Reserve takes to manage the money supply and interest rates to pursue macroeconomic policy objectives refer to
A) fiscal policy.
B) monetary policy.
C) quantitative analysis.
D) Federal Reserve transparency.
B
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Individuals are forced to make choices because
a. wants are unlimited. b. the supply of resources is infinite. c. wants are unlimited and resources are scarce. d. resources exceed wants.
A one-year bond has an interest rate of 5% today. Investors expect that in one year, a one year bond will have an interest rate equal to 7%
According to the expectations theory of the term structure of interest rates, in equilibrium, a two-year bond today will have an interest rate equal to A) 3.0%. B) 5.0%. C) 5.5%. D) 6.0%.
Out of the various types of M1 (demand deposits, coins and bank notes), only demand deposits
(a) can be used to generate loans by banks. (b) serve as a medium of exchange. (c) serve as a unit of account. (d) store value.
For a market for a good or service to exist, there must be a
a. group of buyers and sellers. b. specific time and place at which the good or service is traded. c. high degree of organization present. d. All of the above are correct.