When a bank repays a _________________ loan, the Fed _____________________ the bank's reserve account
A) overnight; subtracts the repayment from
B) overnight; adds the repayment to
C) discount; adds the repayment to
D) discount; subtracts the repayment from
D
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The trade balance must equal the level of private and public saving in the country
Indicate whether the statement is true or false
One objection to supply-side tax cuts is that demand-side changes
a. are smaller than supply-side changes. b. and supply-side changes are about equal. c. are more unpredictable than supply-side changes. d. are larger than supply-side changes.
Suppose that Firms A and B each produce high-resolution computer monitors, but Firm A can do so at a lower cost. Cassie and David each want to purchase a high-resolution computer monitor, but David is willing to pay more than Cassie. Which of the following market outcomes is efficient?
a. Firm A produces a monitor that Cassie buys. David does not purchase a monitor. b. Firm A produces a monitor that David buys. c. Firm B produces a monitor that Cassie buys. David does not purchase a monitor. d. Firm B produces a monitor that David buys.
Foreign direct investment that takes the form of purchasing an existing plant is often called:
a. acquisition FDI. b. greenfield FDI. c. requisition FDI. d. brownstone FDI.