Projecting that it might temporarily fall short of legally required reserves in the coming days, the Bank of Beano decides to borrow money from its regional Federal Reserve Bank. The interest rate on the loan is called the ________.

The federal government

a. runs a deficit when tax revenues are greater than government purchases. b. runs a surplus when tax revenues are smaller than government purchases. c. runs a deficit when tax revenues are smaller than government outlays. d. runs a surplus when tax revenues are greater than government purchases. e. runs a surplus when tax revenues are smaller than transfer payments.

Which of the following groups believes that unemployment is only a temporary condition that disappears when unemployed workers, competing for jobs, drive down wage rates?

a. classical school b. Keynesian school c. neo-Keynesian school d. rational expectations school e. supply-side school