Which statement is correct?
a. The discount rate is the rate banks charge one another on overnight loans
b. The Federal funds rate is the rate banks charge their most creditworthy customers
c. The real interest rate is greater than the nominal interest rate during periods of inflation
d. The prime interest rate rises and falls with the Federal funds rate
d. The prime interest rate rises and falls with the Federal funds rate
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Can a country have a trade deficit forever?
What will be an ideal response?
Which of the following situations is represented by a nearly horizontal supply curve for a good?
a. Small price changes lead to small changes in quantity demanded of the good. b. Small price changes lead to small changes in quantity supplied of the good. c. Producers of the good are not operating efficiently. d. Producers of the good are not maximizing profit. e. Small changes in the price of the good lead to large changes in the quantity supplied of the good.
When Congress agreed to raise the debt ceiling during the economic meltdown in the United States in 2011, it temporarily averted a shutdown crisis, but the deal they reached to do so created the _____.
A) risk-return relationship B) fiscal cliff C) bottom-up budgeting D) niche barrier
Which market structure is characterized by a few interdependent firms?
A. Monopolist competition. B. Monopoly. C. Oligopoly. D. Perfect competition.