People who have bought a house using an adjustable-rate mortgage are most likely to be hurt by
A. an increase in the federal funds rate.
B. a decrease in the reserve requirement.
C. an increase in the inflation rate.
D. an increase in the amount of the Fed's discount lending.
Answer: A
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If the Federal Reserve purchases newly issued government bonds, the government is said to be
A) borrowing from the public. B) monetizing the deficit. C) borrowing from itself. D) fiscalizing the deficit.
The table below shows data (in millions) for Sun Trust Banks in September 2007 and September 2008
2007 2008 Loans $83 $78 Reserves $4 $5 Deposits $114 $95 The data show that Sun Trust A) increased its reserve ratio to 5.3 percent over the 12 months. B) increased its reserve ratio to 6.4 percent over the 12 months. C) has fewer excess reserves in 2008. D) faced a higher currency drain ratio in 2008.
If there is an active surplus (+) of +$30 billion and an actual deficit (-) of -$40 billion, then:
a. The full employment deficit must be -$70 billion. b. The passive deficit (-) must be -$10 billion. c. The full employment deficit (-) must be -$30 billion d. The passive deficit (-) must be -$70 billion. e. The passive surplus (+) must be +$40 billion.
The natural rate of unemployment is the rate that prevails when structural, frictional, and seasonal unemployment are all equal to zero, and the only source of unemployment is cyclical unemployment
Indicate whether the statement is true or false