A headline reads: "Fed Cuts the Federal Funds Rate by Half a Point." This suggests that:
a. Monetary policy has eased
b. Tax rates have been reduced
c. The prime interest rate will rise
d. The discount rate will rise
a. Monetary policy has eased
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Use the following diagram for the corn market to answer the question below. 
If the price in this market is fixed at $2 per bushel, then
A. buyers will find too much corn in the market. B. buyers will be able to get as much corn as they wish to buy. C. sellers will not be able to sell all the corn that they intended to sell. D. sellers will quickly run out of corn that they bring to market.
The interest rate that banks use as a reference point for interest rates on a wide range of loans to businesses and individuals is the ________.
A. discount rate B. prime rate C. term auction rate D. real interest rate
Which of the following is not a macroeconomic statement?
A. Jenny's wage rate rose, and in response, she decided to work more hours. B. The Federal Reserve lowered interest rates at its last meeting. C. Congress increased the minimum wage rate in January. D. The unemployment rate for the United States rose to 5 percent in the last quarter.
A recession is a decline in:
A. the natural rate of unemployment. B. GDP that lasts six months or longer. C. GDP that lasts one year or longer. D. the full-employment unemployment rate over a year.