Negotiable certificates of deposit were developed in order to
A) compete for loan business that had been going to the commercial paper market.
B) circumvent interest rate regulations on deposits.
C) increase assets that were acceptable as collateral for discount loans.
D) circumvent reserve requirements.
B
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Upon your graduation from college, you find that the economy is in recession and the unemployment rate is relatively high. Nonetheless, you continue along your career path looking for a new job because
A) the wages of college graduates do not fall during recession. B) high unemployment rates do not usually last for very long. C) the cost of additional education is always higher during recession. D) looking for work is your only option.
As aggregate output rises, the demand for money ________ and the interest rate ________, so that money demanded equals money supplied and the money market is in equilibrium
A) increases; rises B) increases; falls C) decreases; rises D) decreases; falls
Education is an example of a positive externality.
Answer the following statement true (T) or false (F)
The balance of payments is divided into two major accounts, the
A. trade account and the capital account. B. current account and the capital account. C. current account and the reserve account. D. current account and the trade account.