The cost to a member bank of borrowing from the Federal Reserve is called the:
a. reserve requirement.
b. discount rate.
c. yield on government bonds.
d. price of securities in the open market.
b
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Using the above table, when Jefferson's Cleaners hires three workers
A) the average product of labor is greater than the marginal product. B) the marginal product of labor is greater than the average product. C) it has already experienced diminishing marginal returns. D) Both answers A and C are correct.
The economics approach can be a useful way to analyze and understand the tradeoffs of economic decisions.
Select whether the statement is true or false. A. True B. False
James took out a fixed-interest-rate loan when the CPI was 200 . He expected the CPI to increase to 206 but it actually increased to 204 . The real interest rate he paid is
a. higher than he had expected, and the real value of the loan is higher than he had expected. b. higher than he had expected, and the real value of the loan is lower than he had expected. c. lower than he had expected, and the real value of the loan is higher than he had expected. d. lower then he had expected, and the real value of the loan is lower than he had expected.
When output rises, unemployment
a) remains unchanged. b) falls. c) rises by a small amount. d) rises by a large amount.