The interest rate that banks charge one another for the loan of excess reserves is the ________.
A. discount rate
B. interest on reserves
C. federal funds rate
D. prime rate
Answer: C
You might also like to view...
Given a typical demand curve and a decline in price, the consumer who wishes to maximize total utility must increase the quantity purchased of a good to arrive at an optimal MU = P point.
Answer the following statement true (T) or false (F)
Which of the following statements is true of the relationship between average and marginal costs? a. The sum of the marginal cost of a good and its average cost is equal to the total cost of the good. b. The marginal cost of a good is inversely proportional to its average cost. c. The marginal cost of a good is equal to the first derivative of the average cost of the good
d. The average cost of a good is equal to the first derivative of the marginal cost of the good.
Between 1990 and 2003, college tuition went up 130 percent, which is __________ the increase in the prices of housing, gasoline, and medical care
A) slightly more than B) less than C) about the same as D) considerably more than
Suppose Paul has chosen a combination of two goods, A and B, such that the marginal utility per dollar spent for good A (MUA/PA) is .6 and the marginal utility per dollar spent for good B (MUB/PB) is 1. To increase utility with the same amount of money, Paul should:
A. increase the number of B consumed and decrease the number of A consumed. B. increase the number of both A and B consumed. C. increase the number of A consumed and decrease the number of B consumed. D. do nothing; he cannot increase total utility.