The discount rate is the rate charged by the Fed on consumer loans it makes to the public, such as for student loans, automobile loans, or mortgage loans
Indicate whether the statement is true or false
false
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When demand for money is unstable,
A) a constant interest-rate policy will be superior to a policy of constant money-supply growth. B) constant money-supply growth will be superior to a countercyclical monetary policy. C) procyclical monetary policy would be needed to keep the interest rate constant. D) Both A and C are correct.
The demand curve for a monopolistic competitor slopes downward because
A. demand drops to zero after a slight price increase. B. there are close but not perfect substitutes for the product. C. customers have no loyalty to the product. D. the product is undifferentiated.
Whenever external costs exist:
A.) Social demand is less than market demand. B.) Market demand is less than social demand. C.) Market demand and social demand are equal. D.) Market demand understates the social benefits.
When MR < MC for a firm, the firm should
A) reduce its level of output. B) stay at the same level of output. C) stop producing. D) increase output, unless P < AVC.