Banks historically have used the discount window:
A. often, because its low interest rate can serve as a source of profit for banks.
B. only during times of economic boom, when there is a high demand for loans.
C. often, because it provides instant access to needed funds for banks.
D. sparingly, because it is often seen as a sign of financial trouble for a bank.
Answer: D
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Refer to the above figure. Which panel represents what happens in the U.S. job market in the short-run when U.S. firms substitute labor outside of the U.S. for labor inside the U.S.?
A) Panel A B) Panel B C) Panel C D) Panel D
Opponents of inflation targets say that: a. such targets encourage workers to expect a low and stable inflation rate and hold down demands for wage increases. b. the Fed pays less attention to jobs and economic growth when it sets such targets
c. such targets encourage firms to plan on a low and stable inflation rate and hold down price increases. d. such targets encourage investors to plan on a low and stable inflation rate and hold down demands for interest rate increases. e. the Fed pays more attention to jobs and economic growth when it sets such targets.
What will happen in the gasoline market now if buyers expect higher gasoline prices in the near future?
a. The demand for gasoline will increase. b. The demand for gasoline will decrease. c. The demand for gasoline will be unaffected. d. The supply of gasoline will increase.
The change in total output due to the change in one variable input, while holding all other inputs constant, is the
A. marginal physical product. B. derived demand for labor. C. marginal revenue product. D. market demand curve for labor.