Identify the correct definition of the federal funds rate
A) The federal funds rate is the interest rate at which the Fed lends money to households.
B) The federal funds rate is the interest rate at which banks lend money to the Fed.
C) The federal funds rate is the interest rate at which banks lend their deposits with the Fed to other banks.
D) The federal funds rate is the interest rate at which the Fed lends money to business firms.
C
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If the price of a hot dog is $2 and the price of a hamburger is $4, then the
A) relative price of a hot dog is 1/2 of a hamburger per hot dog. B) money price of a hot dog is 2 hamburgers per hot dog. C) relative price of a hamburger is 1/2 of a hot dog per hamburger. D) money price of a hamburger is 2 hot dogs per hamburger.
If the foreign exchange rate is 70 cents for one Swiss franc, then
A) a car that costs 40,000 francs will cost $7,143.00. B) a wine that costs 200 francs will cost $14.00. C) a clock that costs 500 francs will cost $350.00. D) a house that costs 100,000 francs will cost $700,000.00.
The opportunity cost of attending a concert would include:
a. the price you paid for the ticket and the value of your time. b. the price you paid for the ticket, but not the value of your time. c. the value of your time, but not the price you paid for the ticket. d. neither the price of the ticket nor the value of your time.
Average labor productivity times the proportion of the population employed equals:
A. real GDP per worker. B. real GDP per person. C. real GDP. D. output per worker.