The rate of interest that Federal Reserve banks charge member banks is called the
What will be an ideal response?
discount rate.
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Policies based on normative economic ideas tend to increase economic efficiency and improve equity
Indicate whether the statement is true or false
The demand curve for gasoline should be
A) more elastic in the long run than in the short run. B) less elastic in the long run than in the short run. C) as elastic in the long run as it is in the short run. D) more or less elastic in the long run versus the short run depending upon supply conditions.
Select the letter of the diagram in Figure 28.1 that best represents the effect of each event on the United States wheat market, ceteris paribus: The federal government restricts the amount of agricultural products that can be imported. (See Figure 29.4.)
A. a. B. b. C. c. D. d.
If the Fed wants to reduce the inflation rate, it should lower the discount rate.
a. true b. false