If the economy is inflationary, the Fed would most likely:
a. encourage banks to provide loans by buying government securities.
b. encourage banks to provide loans by raising the discount rate.
c. encourage banks to provide loans by selling government securities.
d. restrict bank lending by selling government securities.
e. restrict bank lending by lowering the federal funds rate.
d
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The local Allied Moving Company begins this year with capital equal to $250,000. During the year the firm depreciates $150,000 worth of its capital and ends the year with capital equal to $250,000
Which statement correctly summarizes Allied Moving Company's investment? A) Allied Moving Company made gross investment of $250,000 during the year. B) Allied Moving Company made no net investment during the year. C) Allied Moving Company made no gross investment during the year. D) Allied Moving Company made no capital investment during the year. E) Allied Moving Company made net investment of $150,000 during the year.
Velocity represents the average number of times that a dollar is used in purchasing final goods and services in a one-year period
a. True b. False Indicate whether the statement is true or false