The Fed's Regulation Q
A) placed a ceiling on the interest rates U.S. banks could pay on time deposits to foreigners.
B) placed a ceiling on the interest rates U.S. banks could pay on time deposits.
C) placed a ceiling on the amount U.S. residents can deposits in Euro banks.
D) placed a ceiling on the amount foreign residents can deposits in domestic American banks.
E) placed a ceiling on the amount foreign banks can pay on time deposits.
B
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The figure above shows a local lawn cutting service's demand for labor curve when the price of cutting an acre of lawn is $50 per acre. If the wage rate rises from $100 per day to $200 per day, the firm's demand for labor curve
A) shifts leftward. B) shifts rightward. C) does not shift at all, but the firm moves upward along the curve. D) None of the above because this change shifts the supply of labor curve.
Marv Pilson has $50 worth of groceries in a shopping cart at his local Shop 'n Save. Assume that the marginal utility per dollar of the liter bottles of soft drink in Marv's cart equals 50
The marginal utility per dollar of the boxes of cereal in Marv's cart equals 20. Marv has only $50 to spend, but has not yet paid for his groceries. How can Marv increase his total utility without spending more than $50? A) Marv should buy fewer boxes of cereal and fewer bottles of soft drink. He can then spend more on other items. B) Marv should substitute his favorite soft drink or the cereal in his cart for generic brands that have lower prices. C) Marv should buy more boxes of cereal and fewer bottles of soft drink. D) Marv should buy fewer boxes of cereal and more bottles of soft drink.