The interest rate that banks charge one another on overnight loans is called the:
A. discount rate.
B. prime lending rate.
C. overnight lending rate.
D. federal funds rate.
D. federal funds rate.
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Lower personal income taxes
A) decrease disposable income. B) decrease aggregate demand. C) increase transfer payments. D) increase aggregate demand.
Refer to Figure 21-2. Which of the following is consistent with the graph depicted above?
A) There is a shift from an income tax to a consumption tax. B) The government runs a budget surplus. C) New government regulations decrease the profitability of new investment. D) An expected expansion increases the profitability of new investment. Figure 21-3
The economist assumes that people act in accordance with the equimarginal principle, because the economist assumes that people are
a. altruistic. b. selfish. c. rational. d. price takers.
In the diagram, (1) is the:
A. expected-rate-of-return curve and (2) is the average total cost curve.
B. total revenue curve and (2) is the interest-rate cost-of funds-curve.
C. expected-rate-of-return curve and (2) is the interest-rate cost-of-funds curve.
D. marginal cost curve and (2) is the marginal benefit curve.