The Federal Reserve views commercial bank use of the discount window as
A) something to be used only by commercial banks.
B) completely up to the borrower.
C) a privilege, not a right for eligible borrowers.
D) something to be used only in financial panics.
C
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Suppose Starbucks currently charges $2.50 per cup for its latte
If Starbucks raises the price to $3.00 per cup, based on the demand curve in the figure above, its total revenue will ________ because the demand for Starbucks latte is ________ over this price range. A) increase; elastic B) decrease; elastic C) increase; inelastic D) increase; unit elastic E) not change; unit elastic
A(n) ________ shows the bundles of two goods that provide an equal level of satisfaction to the consumer
A) budget set B) indifference curve C) demand curve D) budget line
Which of the following correctly describes the special interest theory of regulation?
a. Large numbers of poorly-organized consumers, each of whom have very little at stake in the outcome of economic regulation, capture the regulatory process and force regulated monopolies to accept negative economic profits. b. Large numbers of poorly-organized military veterans, each of whom have very little at stake in the outcome of economic regulation, capture the regulatory process and force consumer-products firms to convert their factories to produce military goods and services. c. Well-organized producer groups expect to profit from economic regulation and are able to persuade public officials to impose the restrictions that existing producers find attractive, such as limiting entry by new firms or competition by existing firms. d. Well-organized producer groups incur loss from economic regulation which force them to keep prices low, while consumers enjoy a larger surplus.
The Federal Open Market Committees
A. include all seven members of the Board of Governors, the President, and ranking members of the Senate and Congress. B. conduct the most important parts of monetary policy. C. has complete control over the entire financial system. D. is responsible for the fiscal policy of the United States.