The Fed raises the federal funds rate. Which of the following changes takes the longest time before it occurs?
A) Quantity of money decreases.
B) Exchange rate rises.
C) Supply of loanable funds decreases.
D) Aggregate demand decreases.
E) Short-term interest rates rise.
D
Economics
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What is one difference between stocks and bonds?
A) Bonds are purchased at a bank, while stocks are purchased through the federal government. B) Bonds earn a higher rate of return than stocks. C) Stocks earn a higher rate of return than bonds. D) Stocks represent partial ownership in a firm, while bonds do not.
Economics
Which of the following terms implies the least degree of confidence in an economic generalization?
A. Hypothesis. B. Theory. C. Principle. D. Law.
Economics