Which of the following is an example of a tight monetary policy?
(a) an increase in the reserve requirement
(b) a decrease in the discount rate
(c) a decrease in the federal funds rate
(d) the Fed buying government securities in the open market
The interest rate that banks are charged when they borrow reserves (overnight) from other commercial banks is the
(a) commercial paper rate.
(b) discount rate.
(c) federal funds rate.
(d) prime rate.
toy store adds bicycles to its inventory in 2012 in anticipation of an increased demand for bicycles. But the store is not able to sell the bicycles in 2012. The bicycles the toy store added to its inventory will
(a) not be counted in 2012 GDP, because they were not sold in 2012.
(b) be counted in 2012 GDP as a durable consumption expenditure.
(c) be counted in 2012 GDP as part of gross private domestic investment.
(d) not be counted in 2012 GDP because they are intermediate goods.
In 2010 final sales equal $110 billion and the change in business inventories is a negative $10 billion. GDP in 2010 is
(a) $110 billion.
(b) $120 billion.
(c) $100 billion.
Which of the following is an example of a tight monetary policy?
(a) an increase in the reserve requirement
(b) a decrease in the discount rate
(c) a decrease in the federal funds rate
(d) the Fed buying government securities in the open market
The interest rate that banks are charged when they borrow reserves (overnight) from other commercial banks is the
(a) commercial paper rate.
(b) discount rate.
(c) federal funds rate.
(d) prime rate.
toy store adds bicycles to its inventory in 2012 in anticipation of an increased demand for bicycles. But the store is not able to sell the bicycles in 2012. The bicycles the toy store added to its inventory will
(a) not be counted in 2012 GDP, because they were not sold in 2012.
(b) be counted in 2012 GDP as a durable consumption expenditure.
(c) be counted in 2012 GDP as part of gross private domestic investment.
(d) not be counted in 2012 GDP because they are intermediate goods.
In 2010 final sales equal $110 billion and the change in business inventories is a negative $10 billion. GDP in 2010 is
(a) $110 billion.
(b) $120 billion.
(c) $100 billion.
Related textbook solutions
Related questions
Macroeconomics
| A | B | Answer | ||
| Which one of the following will be an automatic stabilizer | A. Board of Governors and the 12 Federal Reserve Banks | |||
| GDP is the market value of | B. Structural | |||
| A decrease in government spending will cause | C. Real GDP is adjusted for changes in the price level. | |||
| An increase in aggregate demand is most likely to be caused by a decrease in | D. Price of one nation's currency in terms of another nation's currency | |||
| Which is one of the three types of unemployment | E. Two countries are comparatively able in producing what they need, however choices to engage in international trade | |||
| The Federal Reserve System consist of how many members and how many locations | F. People receive loans from their banks. | |||
| Foreign exchange rates refer to the | G. Real GDP. | |||
| Money is "created" when | H. Discount Rate | |||
| Fiscal policy is enacted through changes in | I. Private investment is crowded out by public spending | |||
| The tools of monetary policy for altering the reserves of commercial banks are the | J. All final goods and services produced in an economy in a given year. | |||
| The Federal funds rate is the rate that banks pay for loans from? |
| |||
| What is meant by the crowding out effect | L. Decrease in aggregate demand. | |||
| The goal of expansionary fiscal policy is to increase | M. Unemployment insurance | |||
| Nominal GDP differs from real GDP because | N. Discount rate, reserve ratio, open market operations, and term auction | |||
| What is meant by comparative advantage | O. Taxation and government spending. |
