Funds that earn a fixed rate of interest and must be held for a stipulated period of time are known as
a. check able deposits.
b. time deposits.
c. savings deposits.
d. money market funds.
b. time deposits.
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Which of the following would increase the demand for U.S. dollars in the foreign exchange market?
a. the spending of U.S. tourists in France b. the purchase of Japanese automobiles by American consumers c. the sale of U.S. computer equipment to a Canadian buyer d. the purchase of a Mexican shoe factory by a U.S. investor
The frictional unemployment rate is 2.5 percent, the structural unemployment rate is 3.1 percent, and the economy's current unemployment rate is 5.6 percent. The economy is in
A) an inflationary gap producing more than Natural Real GDP. B) a recessionary gap producing more than Natural Real GDP. C) an inflationary gap producing Natural Real GDP. D) a recessionary gap producing less than Natural Real GDP. E) long-run equilibrium.