The most commonly used tool by the Federal Reserve to control the monetary base is
a. changes in the discount rate.
b. changes in tax rates on commercial banks.
c. changes in legal required reserve ratios.
d. open market operations.
D
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Refer to Scenario 16.3. What is the relative price of tee shirts to candy?
A) $2.25 B) $2 C) $1.40 D) The relative price will be between $2.25 and $1.40. E) It is impossible to determine.
A young chef is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays $20,000 a year, and take over a store building that he owns and currently rents to his brother for $6,000 a year. His expenses at the sushi bar would be $50,000 for food and $2,000 for gas and electricity. What are his explicit costs?
a. $26,000 b. $66,000 c. $78,000 d. $52,000 e. $72,000
A commercial bank can receive a loan from another commercial bank in the
A) federal funds market. B) bank loan market. C) Fed market. D) discount market.
The price of Y is $10.According to the above figure, if the price of X is $5, what combination of X and Y will a utility-maximizing consumer choose?
A. 120X, 250Y B. 200X, 620Y C. 80X, 20Y D. 120X, 620Y E. none of the above