The discount rate is the interest rate that:
a. banks charge on large loans
b. banks charge on loans to other banks.
c. the Fed charges on loans to branches of the U.S. government.
d. the Fed charges on loans to depository institutions.
e. the Fed charges on loans to the public.
d
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Marginal propensity to consume
A) is the amount of consumption that is independent of the level of disposable income. B) is the same as the break-even point. C) is the proportion of total disposable income that is consumed. D) gives the amount a person changes planned consumption for a change in real disposable income.
What are supply shocks? Explain what effect adverse and favorable supply shocks have on the supply curve
What will be an ideal response?
When there is a negative externality in a market, too much of the good is produced
Indicate whether the statement is true or false
If a tax rate falls as a person's income rises, the tax is a:
A. proportional tax. B. progressive tax. C. regressive tax. D. poll tax.