When the Fed lends money to a commercial bank, the bank:
A. increases its reserves and enhances its ability to extend credit to bank customers.
B. decreases its reserves and reduces its ability to extend credit to bank customers.
C. pays the federal funds interest rate on the loan.
D. pays the prime interest rate on the loan.
A. increases its reserves and enhances its ability to extend credit to bank customers.
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Which of the following is NOT a regional trade agreement?
a. the Trans-Pacific Partnership b. the Trans-Atlantic Trade and Investment Partnership c. the North American Free Trade Area d. the Europe-Japan Free Trade Area
What is the most common measure of a firm's capital stock, and why is it not the most important to focus on?
What will be an ideal response?
If the utility function (U) between food (F) and clothing (C) can be represented as U = , the marginal rate of substitution of clothing for food equals
A) -C/F. B) -F/C. C) - . D) - .
The geographic organization of the U.S. Congress into districts _____
a. sometimes encourages and sometimes discourages the representation of special interests depending upon the shape of the size of the government program b. has no relationship to the representation of special interests c. discourages the representation of special interests d. encourages the representation of special interests