The Fed directly sets:

A. the prime interest rate but not the federal funds rate.
B. both the federal funds rate and the prime interest rate.
C. neither the federal funds rate nor the prime interest rate.
D. the discount rate and the prime interest rate.


C. neither the federal funds rate nor the prime interest rate.

Economics

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In Figure 3-5 above, saving is positive at

A) point J. B) point K. C) point L. D) all of the above.

Economics

An optimal decision is one that is selected based on an analysis of

a. explicit costs but not implicit costs. b. implicit costs but not explicit costs. c. both explicit costs and implicit costs. d. neither explicit costs nor implicit costs.

Economics

In theory, the law of one price makes a lot of sense. So why do we see it fail so often?

What will be an ideal response?

Economics

Suppose a union successfully negotiates a wage rate for its members that is above the competitive wage rate, then

A) the quantity of labor demanded will be greater than the quantity supplied. B) the quantity of labor demanded will be less than the quantity supplied. C) the labor market will be in equilibrium. D) it is impossible to tell whether or not the labor market will be in equilibrium without more information.

Economics