Everything else held constant, in the market for reserves, when the federal funds rate is 3%, lowering the discount rate from 5% to 4%
A) lowers the federal funds rate.
B) raises the federal funds rate.
C) has no effect on the federal funds rate.
D) has an indeterminate effect on the federal funds rate.
C
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What is a black market? What types of goods are likely to be traded in a black market? What are the problems that black markets pose in an economy?
What will be an ideal response?
The resource market involves transactions dealing with
a. natural resources and financial services. b. the borrowing and lending of financial capital. c. the buying and selling of final goods and services. d. labor services, natural resources, and physical capital.
Marginal utility can be
A) negative. B) zero. C) positive. D) positive, negative, or zero.
Over time, spending on nondurable goods is ________ spending on durable goods.
A. roughly equal to B. economically wiser than C. smoother than D. more erratic than