If the Fed increases the discount rate, commercial banks pay a ________ interest rate if they borrow money from the Fed and will therefore ________
A) higher; borrow more money from the Fed and make more loans to consumers
B) higher; deposit more money into their reserves at the Fed
C) lower; borrow more money from the Fed and make more loans to consumers
D) lower; borrow less money from the Fed and make fewer loans to consumers
E) higher; borrow less money from the Fed and make fewer loans to consumers
E
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The value in one year of $25 invested today at an annual interest rate of 5 percent will be
A) $25.00. B) $26.25. C) $27.50. D) $30.00.
If a firm has a market share that exceeds ________ percent, most courts will conclude that the firm is a monopoly and if the market share exceeds ________ percent, the courts are likely to conclude that the firm is coming "dangerously close" to being a monopoly.
A) 99; 50 B) 75; 50 C) 90; 75 D) 80; 60
Under a managed float,
a. currency traders "buy low and sell high" b. a central bank attempts to stabilize an exchange rate c. national governments use fiscal policy to prevent inflation d. managers allow product prices to float in response to supply and demand shifts e. governments attempt to harmonize their tax policies.
A firm is a price taker in the labor market if
A. there is a scarcity of labor in the market. B. the hiring of more workers will leave the existing wage rate unchanged. C. the skills of available workers do not match the requirements for the job. D. the hiring of more workers will drive the existing wage rate up.