Which statement about changes in the discount rate is true?
a. The discount rate is usually set lower than the federal funds rate to encourage borrowing.
b. The discount rate is rarely changed because it has a huge impact on the money supply.
c. The Fed can raise the discount rate to increase the money supply.
d. Changes in the discount rate are seen as a signal of the Fed’s monetary policy intentions.
d. Changes in the discount rate are seen as a signal of the Fed’s monetary policy intentions.
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A ticket to an Eric Clapton concert costs $45 . If you have a ticket, you can "scalp" it (sell it illegally) for $75 . To a ticket holder, the opportunity cost of actually attending the concert is
a. $45. b. $50. c. $75. d. $115.
The labor force is the part of the adult population that is either working or actively looking for a job.
Answer the following statement true (T) or false (F)
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point A. The opportunity cost of moving from Point A to Point B is the
A. 30 LCD televisions that must be forgone to produce 60 additional OLED televisions. B. 90 LCD televisions that must be forgone to produce 20 additional OLED televisions. C. 30 LCD televisions that must be forgone to produce 20 additional OLED televisions. D. 120 LCD televisions that must be forgone to produce 40 additional OLED televisions.
One of the most important forms of capital income is
A. rents. B. interest. C. investments. D. dividends.