A sign that the Federal Reserve is moving to raise interest rates would be
A) an increase in bank reserves.
B) large purchases of Treasury securities by the Federal Reserve.
C) a widening gap between the Treasury bill yield and the discount rate.
D) a narrowing gap between the Treasury bill yield and the discount rate.
C
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When exchange rates are fixed, a temporary expansion in the money supply will:
A) increase output. B) leave output unchanged. C) lower output. D) increase the exchange rate.
Which is the best example of an intangible good?
A) the car you dream of owning but cannot afford B) the suit you hope will make a good impression when you go on job interviews C) the textbook study guide you hope will prepare you to perform well on examinations D) the advice and expertise provided by the music store clerk who sold you that CD