If a firm can borrow or lend at a 6 percent annual interest rate, it will
a. buy more capital if it has the funds on hand than if it has to borrow them
b. ignore the market rate of interest when making capital investment decisions
c. buy less capital if it has the funds on hand than if it has to borrow them
d. ignore the market rate of interest when making saving decisions
e. buy the same amount of capital whether it has the funds on hand or has to borrow them
E
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Typically the largest asset item in the Federal Reserve Banks' consolidated balance sheet (as illustrated in the book, for April 2013) is:
A. Loans to commercial banks B. Federal Reserve Notes C. Treasury deposits D. Securities
The pattern of recession, recovery, and expansion is known as the
A. inflationary cycle. B. economic cycle. C. business cycle. D. recession cycle.