The steps in the transmission of monetary policy are
A) Congress increases government expenditures on goods and services, leading to an increase in aggregate demand.
B) Congress increases the money supply, which lowers the interest rate, and leads to an increase in aggregate demand.
C) the Federal Reserve increases government expenditures on goods and services, leading to an increase in aggregate demand.
D) the Federal Reserve lowers the federal funds rate, which lowers the real interest rate and leads to an increase in aggregate demand.
E) Congress increases the budget deficit, which increases the money supply, which increases aggregate supply.
D
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The federal funds rate is always __________ the repo rate
A) above B) below C) the same as D) None of the above.
During the financial crisis of 2007-2009, the U.S. government determined that
a. AIG was too big to fail but Lehman Brothers was not. b. Lehman Brothers was too big to fail but AIG was not. c. both Lehman Brothers and AIG were too big to fail. d. neither Lehman Brothers nor AIG were too big to fail.
Colombia produces coffee with less labor and land than any other country. This implies that it has:
a. a comparative advantage in coffee production. b. a perfectly elastic demand curve for coffee. c. a perfectly inelastic supply curve of coffee. d. an absolute advantage in coffee production.
Relative poverty refers to
A) how a family's income compares to the incomes of those around them. B) poverty levels at a stated income cutoff. C) the number of poor in one state relative to another. D) none of the above.