The discount rate's main significance is that:
a. changes in the rate are commonly viewed as a signal of the Fed's intentions with respect to monetary policy.
b. changes in the rate are a sign that monetary policy has swung strongly in a new direction
c. it can be done quietly, without a lot of political debate or a public announcement.
d. a small change in the rate can make a huge change in the number of dollars that are in excess reserves in banks all over the country.
a
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If firms' inventories exceed their planned inventories, firms
A) increase employment. B) increase GDP. C) increase production. D) increase income. E) decrease production.
In a problem involving exchange, the contract curve shows
A) all exchanges that make both parties better off. B) the one exchange that makes both parties better off. C) all possible allocations of goods between both parties. D) all possible efficient allocations between both parties.
The elasticity of demand for a luxury car is: a. highly elastic
b. highly inelastic. c. equal to zero. d. infinitely elastic.
If two individuals have identical schooling, their incomes will be equal.
Answer the following statement true (T) or false (F)