One of the reasons primary credit exists is to:
A. provide banks with a low interest source for long-term capital.
B. provide banks with an available source for unsecured lending.
C. bail out banks which are in financial trouble.
D. provide additional reserves when the open market staff's forecasts are off.
Answer: D
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Which of the following statements best describes the relationship between GDP and standard of living?
a. GDP does not understate or overstate the standard of living. b. GDP may understate the standard of living. c. GDP may understate or overstate the standard of living. d. GDP may understate the standard of living.
If the sellers of labor in a competitive market decided to unionize, ceteris paribus, then wages would
A. Rise and employment would fall. B. Rise and employment would rise. C. Fall and employment would rise. D. Fall and employment would fall.
If a country's income level is high:
A. it must be well-endowed with natural resources. B. it must have a high level of growth. C. it usually has a high level of GDP per capita. D. All of these are true.
An elastic demand indicates that
A. relatively large changes in price are required to obtain a relatively small change in quantity demanded. B. relatively small changes in price lead to relatively large changes in quantity demanded. C. relatively large changes in quantity demanded lead to relatively large changes in price. D. quantity demanded does not vary with changes in the price.