If the Fed increases the discount rate,
A) commercial banks pay a higher interest rate if they borrow from the Fed.
B) commercial banks find it more profitable to increase their loans to businesses.
C) commercial banks increase their lending to the Fed.
D) commercial banks' assets increase.
E) commercial banks pay a lower interest rate if they borrow from the Fed.
A
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Eileen has a comparative advantage over Jan in piano tuning but not in shoe polishing. Therefore,
a. Jan must have an absolute advantage in piano tuning b. Eileen must have an absolute advantage in shoe polishing c. Jan must have a lower opportunity cost of shoe polishing d. Eileen must have an absolute advantage in shoe polishing and in piano tuning e. Eileen must have an absolute advantage in piano tuning
Which of the following items is likely to have the highest positive income elasticity of demand?
a. Bread b. Jewelry c. Soap d. A plumber's service e. Table salt
When the price is P1, in order to maximize profits this firm must produce a quantity equal to 
A. q2. B. q1. C. q3. D. Q1.
A company’s gearing is
a) the ratio of debt to overall assets b) the ratio of stock market valuation to book value c) the share price divided by corporate earnings d) its stockholder’s equity e) the ratio of taxes paid to the overall wage bill