An increase in the federal funds rate should:
A. cause the mortgage rates to increase by more than the increase in the federal funds rate.
B. cause mortgage rates to increase by less than the increase in the federal funds rate.
C. not impact mortgage rates since the federal funds rate is a very short-term rate.
D. have an inverse impact on mortgage rates.
Answer: B
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In 2015, Smileytown consumed 50,000 tubes of toothpaste. In 2016, toothpaste consumption rose to 62,000 tubes. Calculate the percentage change in toothpaste consumption
A) 12% B) 16.42% C) 19.35% D) 24%
All else constant, an increase in the amount of borrowing by the federal government would reduce the amount of money available for businesses to borrow to finance investment spending
Indicate whether the statement is true or false
The term "born with a silver spoon in his mouth" mistakenly implies
A) only monetary endowments allow one to trade with others. B) only the wealthy are strong negotiators in trade. C) endowments are physical. D) endowments differ.
An increase in output would result in no change in long-run average costs when there are
A. economies of scale. B. diminishing marginal product. C. diseconomies to scale. D. constant returns to scale.