The prime interest rate:
A. affects investment spending while the federal funds rate affects consumption spending.
B. affects consumption spending while the federal funds rate affects investment spending.
C. has no effect on exchange rates and net exports.
D. affects investment spending while the federal funds rate affects overnight borrowing of
bank reserves.
D. affects investment spending while the federal funds rate affects overnight borrowing of
bank reserves.
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AAA Company stock has a higher expected rate of return than ZZZ Company stock. All else being equal, you would expect that relative to ZZZ, AAA company stock provides
A) less risk and less liquidity. B) less risk and more liquidity. C) more risk and less liquidity. D) more risk and more liquidity.
In a classic administrative snafu, the Army assigns trained classical musicians to kitchen duty and places trained cooks in the military band. This is an example of inefficiency in
a. output selection. b. production planning. c. product distribution. d. market segmentation.