The discount rate is influenced by Fed actions whereas the Fed sets the federal funds rate
Indicate whether the statement is true or false
FALSE
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Which combination of assets represents the most diversification?
A) holding corporate and Treasury bonds B) holding shares of Google and Yahoo C) holding shares of Google and Microsoft D) holding shares of Google along with Treasury bonds
If a consumer places a value of $20 on a particular good and if the price of the good is $25, then the
a. consumer has consumer surplus of $5 if he buys the good. b. consumer does not purchase the good. c. price of the good will rise due to market forces. d. market is out of equilibrium.
In determining the beginning of recessions, the NBER Business Cycle Dating Committee looks for evidence of decline in:
A. the rate of inflation. B. specific sectors of the economy. C. the stock market. D. the entire economy.
One of the reasons for low cross-price elasticity in monopolistic competition and high cross-price elasticity in perfect competition is that
A. Firms in perfect competition differentiate their products. B. To save money, firms in monopolistic competition do not advertise. C. Consumers do not have perfect substitutes in perfect competition. D. In monopolistic competition consumers loyal to particular brands view other available products as poor substitutes.