In an attempt to bring lenders and borrowers together following the financial crisis of 2008, the Federal Reserve made a large amount of new funds available to financial markets
The Fed expected this to increase the money supply and the total amount of lending because of the multiplier effect, in which a given amount of new reserves results in a multiple increase in
A) long-term debt. B) stockholders' equity.
C) bank deposits. D) required reserves.
C
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The following are hypothetical exchange rates: 2 euros = 1 pound; $1 = 2 pounds. We can conclude that ________.
A. $1 = 0.5 euro B. 1 euro = $2 C. 1 euro = $0.50 D. $1 = 4 euros
The second-largest component of aggregate expenditures in the United States is _____
a. consumption b. investment c. government expenditure d. imports e. exports
A decrease in the number of sellers in the market causes
a. the supply curve to shift to the left. b. the supply curve to shift to the right. c. a movement up and to the right along a stationary supply curve. d. a movement downward and to the left along a stationary supply curve.
A change in which of the following variables would affect the cash flow for a firm?
A) changes in the nominal interest rate B) expected future profit C) changes in the real interest rate D) changes in expected inflation E) none of the above