Which of the following examples would make banks most likely to give loans?
a. A bank receives $10 million from the Fed; interest rates are at 1 percent.
b. A bank receives $5 million from the Fed; interest rates are at 7 percent.
c. A bank receives $2 million from the Fed; interest rates are at 4 percent.
d. A bank receives $1 million from the Fed; interest rates are at 5 percent.
b. A bank receives $5 million from the Fed; interest rates are at 7 percent.
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Some people have argued that the government should provide medical care to everyone. Under this system:
A. prices will not ration medical care so there will be no scarcity. B. the price of medical care will ration resources efficiently. C. prices will not ration medical care so some other rationing method will be used. D. the price of medical care will allocate resources efficiently.
Refer to the figure above. When the demand curve for gas is D1 and the supply curve for gas is S, the equilibrium price is:
A) $3. B) $5. C) $6. D) $8.
In today's Fed, its primary strategy is to
a. target the federal funds rate in the short-run, target inflation in the long-run. b. target inflation c. target the money supply. d. target the federal funds rate in the short-run, balance inflation and output goals in the long-run.
Marginal profit is the slope of the total profit curve
a. True b. False Indicate whether the statement is true or false