Projecting that it might temporarily fall short of legally required reserves in the coming days, the Bank of Beano decides to borrow money from its regional Federal Reserve Bank. The interest rate on the loan is called the ________.
A. Treasury bill rate
B. discount rate
C. federal funds rate
D. prime rate
Answer: B
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Imagine an economy whose autonomous consumption is $100 billion and MPC is constant at 0.90 . Which of the following will shift the economy's consumption curve upward?
a. a tax increase b. higher capacity utilization rates c. higher national income d. lower wealth holdings e. expectations of higher inflation in the future
If the prices of cars doubled, the MRP schedule for autoworkers would
A. rise. B. fall. C. stay about the same.
An individual deposits $12,000 in a commercial bank. The bank is required to hold 10 percent of all deposits on reserve at the regional Federal Reserve Bank. The deposit increases the loan capacity of the bank by:
A. $11,000 B. $10,800 C. $9,600 D. $6,000
The redirection of macroeconomic policy that took place during the Reagan and both Bush administrations was inspired by
a. supply-side economics. b. real business cycle theory. c. new classical economics. d. new Keynesian directions.