An example of nondiscretionary policymaking is
A. a rule under which the Fed targets the inflation rate.
B. a Congressional tax-rate cut aimed at boosting real GDP.
C. changes in the interest rate initiated by the Fed.
D. expansionary fiscal policy.
Answer: A
Economics
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Collateral is
A) the interest rate that banks charge high-quality borrowers. B) assets pledged to the bank in the event the borrower defaults. C) the difference between the value of a bank's assets and the value of a bank's liabilities. D) required reserves minus excess reserves.
Economics
Taxes reduce total spending
a. directly by increasing government purchases by an equal amount. b. directly by substituting investment spending. c. indirectly by reducing government spending. d. indirectly by reducing disposable income.
Economics