The Fed raises the interest rate when it
A) fears recession.
B) wants to increase the quantity of money.
C) fears inflation.
D) wants to encourage bank lending.
E) cannot change the quantity of money.
C
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Answer the following statements true (T) or false (F)
1. In the median-voter model, the median voter refers to the voter who makes her choice at the midpoint of the voting period. 2. In the median-voter model, half the voters have stronger or more positive preferences than the median voter, while half of the voters have weaker or more negative preferences. 3. One prediction of the median-voter model is that during elections, candidates will tend to become "centrists". 4. One implication of the median-voter model as applied to a vote regarding how much government involvement to have in the economy is that most voters would find the resulting government involvement either too large or too small. 5. "Voter failure" is one cause of government failure.
Why are time deposits and savings accounts referred to as near money assets?
a. They cannot be used to pay for something directly but can be quickly converted to money. b. They have not been officially declared to be money by the government but can still be used to pay for things. c. They contain the money that banks must hold in reserve. d. They earn interest, and thus are nearly always increasing in value.