The prime rate
A) is charged by high quality corporations to each other.
B) is charged by banks to each other.
C) is charged by the Federal Reserve to member banks.
D) is charged by banks to high quality corporations.
E) fluctuates on a day-to-day basis as do other rates.
D
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The table above gives data for the nation of Mosh. If real GDP is $6 trillion, then
A) firms increase production because inventories are less than their target levels. B) the economy has reached equilibrium and no change in production will occur. C) firms increase production because inventories exceed their target levels. D) firms decrease production because inventories exceed their target levels. E) We need more information to determine whether firms increase, decrease, or do not change their production.
The Friedman rule works because
A) it maximizes productivity. B) it eliminates over-consumption. C) it encourages people to hold the appropriate quantity of money. D) it can be implemented by the private sector.
If nation A has a comparative advantage over nation B in the production of a product, this implies:
A. it requires fewer resources in A to produce the good than in B. B. the cost of producing the good in terms of some other good's production that must be sacrificed is lower in A than in B. C. that nation B could not benefit by engaging in trade with A. D. that nation A could not benefit by engaging in trade with B.
ADC makes latex-free tubing for blood pressure instruments. This is
A. an output of ADC. B. an input into the production of health. C. both an input and an output. D. These concepts do not apply to this sort of product.