Recall from Chapter 5: interest rates in the free market (without artificial lowering by the Fed) are largely determined by
A) Congress.
B) arbitrary bank lending practices.
C) household saving and consumption preferences.
D) tax revenues and lobbying demands.
C
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Suppose the majority of the shares of British Airways stock were sold to a firm in the United States. Assuming all else remains constant, this will
A) create a capital inflow in the United States. B) decrease the balance of the U.S. financial account. C) increase net portfolio investment in the United States. D) decrease the balance of the U.S. current account. E) decrease foreign direct investment in the United States.
An index based on a mail survey of 5,000 households by the Conference Board that measures households' perceptions of general business conditions, available jobs in the households' local area, and expected personal family income in the coming six
months is called the: A) Consumer Sentiment Index. B) Consumer Confidence Index. C) Consumer Satisfaction Index. D) Consumer Consumption Index.