Over a month in late 2008, the Federal Reserve Bank reduced the interest rate by 1 percentage point
Given that the United States operates under a ________ exchange rate regimes, the primary purpose of these changes was ________ exchange rate of each currency. A) flexible; not designed to influence
B) flexible; designed to influence
C) fixed; designed to influence
D) fixed; not designed to influence
A
You might also like to view...
An increase in the expected future domestic exchange rate causes the demand for domestic assets to ________ and the domestic currency to ________, everything else held constant
A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate
An increase in the unemployment rate which is accompanied by an increase in the inflation rate is represented by a ________ the Phillips curve
A) movement down B) movement up C) upward shift of D) downward shift of
Understanding economics would be helpful to which of the following individuals?
a. a college student planning her next semester courses b. a fashion designer selecting fabric for a new spring collection c. a restaurant owner deciding whether to expand his establishment's hours of operation d. All of the above
Say the required reserve ratio is 10 percent. If you pay back a loan of $20,000 a bank had previously made to you, the act of paying back the loan: a. adds $2,000 in bank reserves
b. adds $20,000 in bank reserves. c. eliminates $2,000 in bank reserves. d. eliminates $20,000 in bank reserves.