Financial intermediaries change the mix of output by transferring financial capital from savers to dissavers (borrowers).
Answer the following statement true (T) or false (F)
True
A financial intermediary is an institution (e.g., a bank or the stock market) that makes savings available to dissavers (e.g., investors).
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The sum of the value added of every firm involved in producing all final goods and services ________ gross domestic product
A) is sometimes greater than and other times less than B) equals C) is greater than D) is less than
Economies of scale are created by greater efficiency of capital and by
A) longer chains of command in management. B) better wages for labor. C) smaller plant sizes. D) increased specialization of labor.
The aggregate supply curve is
a. a curve showing the quantities of total output that business will purchase for investment at various price levels. b. a curve showing the quantities of total output that will be offered for sale at various price levels. c. a curve showing the quantities of goods and services that households will provide at various price levels. d. one point on the aggregate expenditure curve.
Under the Term Auction Facility (TAF), the rate that a depository institution pays on a loan from the Fed is determined by
a. the federal funds rate. b. the discount rate. c. the real rate of interest. d. a bidding process allocating the funds to those willing to pay the highest rates.