Real interest rates are
A) procyclical, just like nominal interest rates.
B) acyclical, while nominal interest rates are procyclical.
C) acyclical, just like nominal interest rates.
D) countercyclical, while nominal interest rates are procyclical.
B
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Which of the following is FALSE?
A) Consumer surplus increases after a tariff is placed on imports. B) Producer surplus increases after a tariff is imposed. C) Government revenue increases after a tariff is imposed. D) Deadweight losses result from tariffs.
Refer to the data. The commercial banking system has excess reserves of:
Answer the question on the basis of the following consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 10 percent. All figures are in billions.
A. $0 billion.
B. $30 billion.
C. $60 billion.
D. $70 billion.