Answer: Setting interest rates and acting as a lender to banks
Explanation: The Fed or the Federal reserve is a central banking authority in any nation. It is responsible for maintaining the money supply in the economy. Some of the functions performed by the central bank are,
a. Setting interest rates and acting as a lender to banks
b. Print currency notes and coins
c. Setting the repo and the reverse repo rates
d. Clearing inter bank payments.
Therefore, the correct option is Setting interest rates and acting as a lender to banks.
Answer: Keynesian economic theory
Explanation: Keynesian analysis says the rise in aggregate demand will ___boost growth _____ Keynesians believe consumer demand is the primary driving force in an economy. while the neoclassical model predicts ____looked at labor contracts as sources of wage stickiness to generate equilibrium models of unemployment.____ in the long run.
Answer: 4 years
Explanation:
First find the amount Rula borrowed from her hometown bank:
= Price of car - Down payment
= 15,000 - 2,000
= $13,000
The amount that Rula is to pay is an annuity. The loan is the present value of that annuity.
Present value of annuity = Annuity * Present value interest factor of annuity
13,000 = 4,280 * Present value interest factor of annuity
Present value interest factor of annuity = 13,000 / 4,280
= 3.0373
Use an annuity table to find out the year that 12% as a discount rate intersects with, such that the present value of interest factor of annuity is 3.0373.
That number is:
= 4 years