Homework Answers
False.
Lower interest rates lead to an increase in net exports (Exports – Imports) because it interest Rates are reduced then US will start to invest to other countries where they get higher return, increasing the exports, and increase in Net exports means reduction of Trade Deficit. So Trade Deficit will not widen rather it will shorten.
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QUESTION 10 Other things equal, if the Federal Reserve pushes interest rates lower, the U.S. trade...
LUS government 29. In order to lower the interest rates, the federal reserve would securities. A....
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According to the practice of the Federal Reserve, which of the following interest rates is normally...
According to the
practice of the Federal Reserve, which of the following interest
rates is normally the highest one?
a.
A
and B are always equal, and C is always lower.
b.
The
Federal funds rate target
c.
The
rate paid on commercial banks’ deposits of reserves
d.
The
discount rate
Consider the figure above. The economy is
in short-run equilibrium. Long-run equilibrium will occur at Point
____.
a.
D
b.
B
c.
C
d.
A
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rates...
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