When does the Fed lend through discount windows?
What will be an ideal response?
The Fed lends through the discount window to provide short term liquidity to banks. Banks use the discount window when they cannot find a lender in the federal funds market. Such lending occurs frequently during financial crises.
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Marginal revenue for a monopolist is computed as
a. average revenue divided by quantity sold. b. average revenue times quantity divided by price. c. total revenue divided by quantity sold. d. change in total revenue per one unit increase in quantity sold.
A concentration ratio
a. measures the percentage of total output supplied by the four largest firms in the industry. b. reflects the level of competition in an industry. c. is related to the control that each firm has over price. d. All of the above are correct.
Based on the graph for saving incentives, a tax law change encouraging saving would shift the ______.
a. loanable funds supply curve to the left
b. loanable funds supply curve to the right
c. loanable funds demand curve to the left
d. loanable funds demand curve to the right
An excise tax of $1.00 per gallon of gasoline placed on the suppliers of gasoline would shift the supply curve
A. up by less than $1.00. B. down by $1.00. C. up by $1.00. D. down by more than $1.00.