The federal funds market is the market where
a. the federal government borrows money from banks to finance the national debt
b. the federal government lends money to commercial banks
c. banks borrow from and lend to each other for short periods of time
d. banks borrow money from the Fed for short periods of time
e. banks buy bonds from the Treasury for long periods of time, typically 10-year bonds
C
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Sometimes distinct patterns around a trend line can be caused by
A) poor underlying data. B) dummy variables. C) seasonal variation. D) statistical anomalies.
In using the Internal Rate of Return approach, one must first calculate the discount rate on the investment that makes
A) the net present value equal zero. B) the interest rate equal zero. C) the interest rate equal the discount rate. D) the first year's return positive.
Who is likely to earn a higher income, dentists or dental hygienists, and why?
a. dental hygienists because their education is less costly b. dentists because their education is less costly c. dental hygienists because their education is more costly d. dentists because their education is more costly e. neither; they usually earn the same wage rate
A tax that is imposed on an imported good is called a
A. government license. B. quota. C. tariff. D. patent.