"Corporate profits" in the national income accounts consists of the following, except:
A. Retained earnings
B. Interest
C. Dividends
D. Corporate income taxes
B. Interest
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Which one of these groups has the highest poverty rate?
A. The elderly B. Children C. White males over 50 D. Working class women
Suppose a Treasury bond will mature in 3 years. If the bond pays a coupon of $100 per year and will make a final par value payment of $3,000 at maturity, what is its price if the relevant market interest rate is 7%?
A) $2,448.89 B) $2,711.33 C) $3,247.57 D) $3,510.00
Answer the following statements true (T) or false (F)
1. The primary function of the Fed’s Board of Governors is to formulate U.S. monetary policy. 2. The first attempt at centralized banking in the United States was the Federal Reserve System. 3. A major weakness of the National Banking System was the perverse elasticity of the money supply. 4. The Federal Reserve System was established by the National Banking Act of 1864. 5. Instead of having one central bank, the Federal Reserve in effect has twelve district banks, each with some amount of autonomy.
The expected effects of an increased budget deficit are
A. higher real interest rates. B. exchange rate depreciation. C. lower inflation. D. All of these responses are correct.