Primary credit is only a backup source of funds for health banks since
A) the primary credit rate is set above the federal funds rate.
B) restrictions as to its use limit its benefits.
C) the secondary credit rate pays 0.5% more.
D) banks must seek funds from other sources prior to requesting a discount loan.
A
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Which of the following statements differentiates between a shortage and a surplus?
A) A shortage occurs when price is held at the equilibrium price, but a surplus occurs when price is held above the equilibrium price. B) A shortage occurs when price is held below the equilibrium price, but a surplus occurs when price is held at the equilibrium price. C) A shortage occurs when quantity supplied exceeds quantity demanded, whereas a surplus occurs when quantity demanded exceeds quantity supplied. D) A shortage occurs when quantity demanded exceeds quantity supplied, whereas a surplus occurs when quantity supplied exceeds quantity demanded.
Consumer surplus is the difference between the highest price someone is willing to pay for a product and the price he actually pays for the product
Indicate whether the statement is true or false
Which of the following is a basic assumption of the Ricardian equivalence theorem?
A) Consumers pay no attention to government budget deficits. B) Consumers think only in terms of the present. C) If current tax cuts result in budget deficit increases, aggregate supply falls. D) Consumers consider future tax payments when deciding how much to spend and save today.
Economic theory assumes that
What will be an ideal response?