The federal funds rate is
a. the Fed's discount rate
b. the difference between the discount rate that the Fed charges banks and the primerate that banks charge their borrowers
c. the interest rate on loans made by banks in the federal funds market
d. the interest rate on loans made by the Fed in the federal funds market
e. the interest rate banks pay to the Fed for belonging to the FDIC
C
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When actual inflation is less than expected inflation,
A) borrowers lose and lenders gain. B) borrowers gain and lenders lose. C) borrowers and lenders both lose. D) borrowers and lenders both gain.
Some claim that the long and agonizing periods of speculation preceding exchange rate realignments would
A) not occur under fixed exchange rate regime. B) not occur under floating. C) become more severe under currency board. D) become less severe under floating. E) be prolonged under floating.
When a particular firm is fully utilizing its capital, its output is given by Y = 10 × . The cost of labor is $1 per unit. To maximize profit, how many units of labor should this firm use?
A) 25 B) 5 C) 3.16 D) 100 E) 50
When studying changes in the economy over time, economists want a measure of the total quantity of goods and services the economy is producing that is not affected by changes in the prices of those goods and services. In other words, economists want to study
a. nominal GDP. b. real GDP. c. the GDP deflator. d. GNP.