When the Fed increases the discount rate, it is more likely that the economy experiences _________ and the increase in the rate will _____________
a. recession; increase the federal funds rate as well
b. recession; increase the cost to banks of borrowing from the Fed
c. recession; decrease the cost to banks of borrowing from the Fed
d. inflation; decrease the cost to banks of borrowing from the Fed
e. inflation; increase the cost to banks of borrowing from the Fed
E
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On a typical acre of land, Iowa can produce either 300 pounds of beef or 100 pounds of soybeans in a year. On a typical acre of land, Nebraska can produce 150 pounds of beef or 200 pounds of soybeans. Which of the following is correct?
A) Nebraska should produce soybeans because its opportunity cost of soybeans is lower. B) Nebraska should produce soybeans because its opportunity cost of soybeans is higher. C) Iowa should produce soybeans because its opportunity cost of soybeans is lower. D) Iowa should produce soybeans because its opportunity cost of soybeans is higher. E) Nebraska and Iowa should divide each acre evenly between soybean and beef production.
The supply-side checklist includes
a. higher taxes b. more government regulation c. more government spending d. less union power in wage determination e. raising transfer payments
If velocity of money is constant; real growth in the output of the economy is +2.5%; and inflation is 2.0%; what is the growth rate of money?
What will be an ideal response?
If the demand for a good decreases as income decreases, then the good is a(n):
A. substitute good. B. inferior good. C. normal good. D. complementary good.