When the Fed decreases the discount rate, banks will
a. borrow more from the Fed and lend more to the public. The money supply increases.
b. borrow more from the Fed and lend less to the public. The money supply decreases.
c. borrow less from the Fed and lend more to the public. The money supply increases.
d. borrow less from the Fed and lend less to the public. The money supply decreases.
a
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The figure above shows the price of a DVD player from 1996 to 2000. a. What type of graph is illustrated above? b. What is the trend in the price of a DVD player?
What will be an ideal response?
If the equilibrium exchange rate is 15 pesos per dollar and the central bank fixes the exchange rate at 17 pesos per dollar then we can conclude that the peso is
(a) appreciated. (b) depreciated. (c) overvalued. (d) undervalued.
The marginal revenue product of labor is:
a. how much labor can be purchased with the revenue from the sale of one more unit of the good. b. how much does the marginal revenue change when you add more labor. c. the same as the marginal revenue product of capital in equilibrium. d. determined by the wage rate. e. the contribution to total revenue made by the marginal laborer.
The net increase to total surplus when a negative externality is corrected or eliminated is due to:
A. the transfer of surplus from those affected by the externality to the consumer. B. the reduced number of transactions in the market. C. the transfer of surplus from consumer or producer to those affected by the externality. D. None of these statements is true.