The discount rate is the rate of interest charged when banks lend excess reserves to one another.
a. true
b. false
Ans: b. false
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Suppose that there are two factors, capital and land, and that the United States is relatively land endowed while the European Union is relatively capital-endowed. According to the Heckscher-Ohlin model
A) European capitalists should support U.S.-European free trade. B) European landowners should support U.S.-European free trade. C) all capitalists in both countries should support free trade. D) all landowners should support free trade. E) the U.S. should compensate European countries once trade commences.
Over time, the price of personal computers has fallen dramatically. All else constant, this would lead us to expect that demand for personal computers has become more price elastic
Indicate whether the statement is true or false
In fractional reserve banking:
a. bank assets are less than bank reserves. b. only a fraction of total deposits are bank reserves. c. only a fraction of required reserves are investor assets. d. bank loans are less than bank reserves. e. a fraction of bank reserves needs to be backed by gold.
Which of the following correctly distinguishes the concepts of marginal utility and total utility?
a. Marginal utility is inversely related to the number of goods consumed, while total utility is directly related to the number of goods consumed. b. Marginal utility is directly related to the number of goods consumed, while total utility is inversely related to the number of goods consumed. c. Marginal utility is the total satisfaction provided by the consumption of a good, while total utility is the additional amount of satisfaction received from the consumption of an additional unit of a good. d. Total utility is always a positive value, while marginal utility is always a negative value.