Refer to Figure 21-3. Which of the following is consistent with the graph depicted above?
A) Taxes are changed so that real interest income is taxed rather than nominal interest income.
B) Technological change increases the profitability of new investment.
C) The government runs a budget deficit.
D) An expected recession decreases the profitability of new investment.
Figure 21-4
A
Economics
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Which of the following institutions is eligible to borrow from the Federal Reserve at the discount rate?
A) Property and casualty insurance companies B) Money market mutual funds C) Credit unions D) Investment banks
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A sudden stop refers to a rapid slowing of capital inflows
Indicate whether the statement is true or false
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