Which of the following statements is true?
A. The Federal funds rate is higher than the prime interest rate
B. The prime interest rate is higher than the Federal funds rate
C. The Federal funds rate and the prime interest rate are often the same
D. The prime interest rate is often the same as the discount rate
B. The prime interest rate is higher than the Federal funds rate
You might also like to view...
Air pollution is a problem because
A) people are greedy. B) people are not environmentally conscious. C) people make use of air without having to bear all the costs of their actions. D) a market economy does not provide as strong an incentive for environmental cleanup as a socialist economy.
The short-run aggregate supply curve is drawn with: a. the price level on the vertical axis and real GDP on the horizontal axis
b. the price level on the vertical axis and nominal GDP on the horizontal axis. c. nominal GDP on the vertical axis and real GDP on the horizontal axis. d. real GDP on the horizontal axis and the rate of unemployment on the vertical axis.
The supply curve of a depletable natural resource is usually
a. downward sloping because the resource runs out over time. b. upward sloping because more of the resource can be profitably extracted at higher prices. c. upward sloping because the price of the resource rises over time. d. vertical because the supply of the resource is fixed.
A free-rider problem exists for any good that is not
a. rival in consumption. b. a private good. c. free. d. excludable.