What is the name of the interest rate charged when the Federal Reserve loans money to banks?
a. the discount rate
b. the reserve requirement rate
c. the prime rate
d. the federal fund rate
a. the discount rate
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According to the "Rule of 70," it will take 4 years for real GDP per capita to double when the growth rate of real GDP per capita is
A) 4 percent. B) 12.25 percent. C) 17.5 percent. D) 28 percent.
Suppose the production of paved roadways can be represented as q = L0.5 + K0.5. Which of the following statements is (are) TRUE?
A) Labor is subject to diminishing marginal productivity in the short run. B) Labor and capital are imperfect substitutes. C) The isoquants for paved roadways are convex. D) All of the above.
If real GDP rises from $700 billion to $704 billion, the economic growth rate is
A. ($704 billion - $700 billion)/$704 billion. B. $700 billion/$704 billion. C. ($704 billion/$700 billion)/100. D. ($704 billion - $700 billion)/$700*100.
Economic systems differ according to what two main characteristics?
A. Ownership of resources and methods of coordinating economic activity. B. The system of government and the quantity of natural resources available. C. Quantity of output produced and who receives the output. D. Who produces the output and what technology is used to produce it.