When the Fed lowers the discount rate, it makes it
What will be an ideal response?
cheaper for banks to obtain additional reserves by borrowing from the Fed
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Given the following hypothetical data where C = $3,000; I = $1,200; G = $2,000; X ? M = ?$500; depreciation = $200; transfer payments = $800, net domestic product is _____.
a. $5,500
b. $5,700
c. $6,200
d. $6,400
e. $6,900
Assume the price of capital falls relative to the price of labor and, as a result, the demand for labor increases. Therefore:
A. capital is very highly substitutable for labor. B. the output effect is greater than the substitution effect. C. the income effect is greater than the output effect. D. the substitution effect is greater than the output effect.
Hot dogs and hot dog buns would be expected to have:
A) positive income elasticities of demand with respect to each other. B) negative income elasticities of demand with respect to each other. C) a positive cross-price elasticity of demand. D) a negative cross-price elasticity of demand.
Which of the following best defines affirmative action?
a. Giving special rights to minorities in hiring b. Providing multicultural training to workers c. Basing income distributions on race d. Evaluating the diversity of a workforce