During a football game, it starts to rain and the temperature drops. The senior class, which runs the concession stand and is studying economics, raises the price of coffee from 50 cents to 75 cents a cup. They sell more than ever before. Which answer explains this?
What will be an ideal response?
The demand for coffee increased.
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Refer to the figure below. 
If both firms offer reduced rates, each earns ________, and if both firms keep their rates high, each earns ________.
A. 500; 300 B. 300; 500 C. 300; 50 D. 50; 300
The sum of the current account, the financial account, and the capital account is ________.
A. 100 B. zero C. the trade deficit D. the reserve balance
What is the standard deviation of the payoff from an investment that yields $5,000 with a probability of 0.15 and $500 with a probability of 0.85?
A. $0 B. $2,581,875 C. $42.50 D. $1,606.82
Discount rate policy is most often
A. lowered when market rates rise. B. used to actively control the money supply. C. the Fed’s primary tool of monetary control. D. passively changed by the Fed to follow market rates.