It is argued that global trade tends to be more important to countries with smaller economies than the U.S. Is this empirically verified?
What will be an ideal response?
Yes. Figure 1-2 shows exports and imports as a percentage of national income in the U.S. and five other countries and notes that "International trade is even more important to most other countries than it is to the U.S."
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If the rate of inflation in a given time period turns out to be lower than lenders and borrowers anticipated, then the effect will be:
a. a redistribution of wealth from borrowers to lenders. b. a redistribution of wealth from lenders to borrowers. c. a net loss in purchasing power for lenders relative to borrowers. d. a net gain in purchasing power for borrowers relative to lenders.
The federal funds rate is closely tied to many interest rates on many types of loans. Which one is the exception?
a. Auto loan rates b. Adjustable rate mortgages c. Adjustable rate home equity loans d. 30-year Treasury bonds e. Business loans