Other things constant, if the Fed decreased the discount rate,
a. the earnings of the Fed would increase.
b. the incentive of commercial banks to borrow from the Fed would be reduced.
c. the prime interest rate would automatically decline.
d. commercial banks probably would reduce their excess reserves and be more willing to extend additional loans.
D
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An advantage of the corporation over other forms of business organization is that
A) the owners have unlimited liability. B) a corporation's profits are taxed only once. C) large-scale, low-cost capital is more readily available. D) the decision-making structure is simple.
Price increases always reduce economic efficiency
a. True b. False Indicate whether the statement is true or false
In an analysis of an excise tax on soda, which of the following is an exogenous variable?
a. The price received by sellers. b. The price paid by buyers. c. The quantity exchanged in the market. d. The tax.
The principle of diminishing returns to labor is based on the:
A. cost-benefit principle. B. equilibrium principle. C. principle of increasing opportunity cost. D. scarcity principle.