The discount rate is the interest rate charged by:
A. The Federal Reserve when it lends money to private banks.
B. A private bank when it lends money to another private bank.
C. A private bank when it lends money to commercial customers.
D. A regional Fed bank when it lends money to another regional Fed bank.
A. The Federal Reserve when it lends money to private banks.
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The belief that higher taxes on the rich are justified because they have obtained a disproportionately large allotment of the services, infrastructure, and protections the government provides is called
A) utilitarianism. B) diminishing marginal utility. C) the benefits-received principle. D) transcendentalism.
A severe hurricane hits Florida, destroying large amounts of the citrus crop. What is the most likely effect of this on the aggregate supply?
A. It will remain unchanged. B. No effect; the economy will move along the curve to a higher price level. C. No effect; the economy will move along the curve to a lower price level. D. It will increase. E. It will decrease.
Trade restrictions provide:
A. Greater consumption possibilities through greater specialization. B. Protection for import-competing industries. C. Protection of comparative advantage. D. Protection of absolute advantage.
Which of the following taxes would impose the smallest excess burden on an individual?
A. a tax on all diet beverages B. a tax on all types of beverages, including water C. a tax on Diet Pepsi D. a tax on all soft drinks