The interest rate for primary credit is usually set ________ basis points ________ the federal funds rate. In March 2008, this gap was changed to ________ basis points

A) 50; below; 100
B) 100; above; 25
C) 100; below; 50
D) 50; above; 25


B

Economics

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In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, an open market purchase ________ the supply of reserves and causes the federal funds interest rate to ________, everything else held constant

A) decreases; fall B) increases; fall C) increases; rise D) decreases; rise

Economics

Sometimes one observes that the price of a company's stock falls after the announcement of favorable earnings. This phenomenon is

A) clearly inconsistent with the efficient markets hypothesis. B) consistent with the efficient markets hypothesis if the earnings were not as high as anticipated. C) consistent with the efficient markets hypothesis if the earnings were not as low as anticipated. D) consistent with the efficient markets hypothesis if the favorable earnings were expected.

Economics

Determining the most socially desirable level of income equality or inequality

a. is done through markets, rather than by the government b. is done directly by firms c. involves normative economics d. involves evaluation of public goods e. involves evaluation of all externalities, both positive and negative

Economics

The behavior of profit-maximizing producers is guided by

A. Philanthropy. B. Social costs. C. Self-interest. D. Aesthetic concerns.

Economics