The interest rate that the Fed charges banks to borrow funds from the Fed is the
A. federal funds rate.
B. money market rate.
C. nominal interest rate.
D. discount rate.
Answer: D
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If a firm's output less than doubles when all inputs are doubled, production is said to occur under conditions of
A) increasing returns to scale. B) imperfect competition. C) intra-industry equilibrium. D) constant returns to scale E) decreasing returns to scale.
While tariff levels have been falling over the past several decades, nontariff barriers have been used increasingly
Indicate whether the statement is true or false
Assume that the central bank tries to reduce unemployment by reducing the discount rate for banks. Which of the following unwelcome effects is not a side effect of this measure?
a. Higher inflation rates. b. Declining nominal exchange rate c. Crowding out. d. All of the above are side effects of a reduced discount rate.
Which of the following scenarios would result in economic growth in the country of Everland?
a) GDP and prices double. b) GDP and population doubles, while prices remain the same. c) Population doubles while GDP and prices remain the same. d) GDP doubles while prices remain the same.