The Fed conducts reverse repurchase agreements with:
A. banks only.
B. the federal government only.
C. banks and financial institutions other than banks.
D. only financial institutions that are not banks, such as the federal government.
Answer: C. banks and financial institutions other than banks.
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Equilibrium expenditure is
A) the amount of aggregate expenditure at which aggregate planned expenditure exceeds real GDP. B) the amount of aggregate expenditure at which aggregate planned expenditure equals real GDP. C) when unplanned inventory change is positive. D) when unplanned inventory change is zero or negative. E) the amount of aggregate expenditure at which aggregate planned expenditure is less than real GDP.
The race-to-the-bottom concept described in the text refers to
A) the situation in which countries with high standards are forced to lower their standards or face the loss of jobs and industry. B) the situation in which human rights are not respected by trading countries. C) adopting the standards of a few selected middle-income and high-income countries. D) the use of low per-capita income as a means of comparing the well-being of individuals. E) None of the above.