The interest rate that banks charge other banks for loans is the
A) discount rate.
B) prime rate.
C) federal funds rate.
D) Treasury bill rate.
C
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In the United States, over the past 40 years federal revenues as a share of gross domestic product have
A) risen steadily and now are about 40 percent. B) fallen below 10 because of rapid economic growth. C) been limited by law to no more than 20 percent. D) ranged between 17 and 19 percent.
The Condorcet voting paradox shows that outcomes based on dictatorial preferences do not always obey the property of transitivity
a. True b. False Indicate whether the statement is true or false
A mobile phone is a
a. private good. b. club good. c. common resource. d. public good.
Some people believe that monetary policy should be made by rule rather than by discretion. One of their beliefs is that
a. setting a policy rule will limit the abuse of power of policymakers. b. policymakers can better influence the political business cycle in their favor when following a policy rule. c. a policy rule provides policymakers with the greatest flexibility to manage inflation. d. if the Fed was required to follow a low-inflation policy, the economy would face a less favorable short-run trade-off between inflation and unemployment.