If the credit supply curve of an economy shifts to the left and the credit demand curve remains unchanged, ________
A) its real interest rate will rise B) its real unemployment level will fall
C) its real interest rate will fall D) its real output will increase
A
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Discount rates are __________ every two weeks by the directors of each regional Federal Reserve Bank but are __________ by the Board of Governors
A) determined; established B) established; determined C) recommended; established D) determined; recommended
When a U.S. firm sells a good abroad for, say, 100 euros (assume $1=1euro), U.S. net exports increase by $100. These $100 in exports can be accounted for as $100 increase in capital outflow because ________
A) if the 100 euros are kept in the foreign bank, the U.S. firm is giving a loan to that bank B) if the U.S. firm uses the 100 euros to buy a share of stock in a foreign firm, the firm is supplying U.S. capital to that foreign firm C) if the U.S. firm uses the proceeds to build a new factory in that country, it is supplying U.S. capital to that country D) all of the above E) none of the above