The Federal Funds Rate is ________
A) the rate charged on overnight loans between banks
B) the rate charged on corporate bank loans to healthy "prime" borrowers
C) the rate charged on U.S. Treasury bonds by the Federal Reserve
D) the rate charged on U.S securities with maturities of less than a year
E) none of the above
A
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The interest rate is:
A. only a return to borrowers. B. both a cost to savers and a return to borrowers. C. both a return to savers and a cost to borrowers. D. a cost to both savers and borrowers. E. only a cost to savers.
The long run aggregate supply curve is vertical because
A) a change in the level of prices will have no effect on real output in the long-run. B) the production possibilities curve is vertical. C) the aggregate demand curve is downward sloping. D) technology increases at a constant rate.
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Based on empirical evidence, the "farm problem" that has confronted U.S. policymakers for many years is attributable, in large part, to the relatively inelastic demand for many agricultural products
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