The discount rate is kept ________ the federal funds rate because the Fed prefers that ________
A) below; banks borrow reserves from each other
B) below; banks borrow reserves from the Fed
C) above; banks borrow reserves from each other
D) above; banks borrow reserves from the Fed
C
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Over the period 1960-1990,
a. South Korea had a higher growth rate than the United States because it had a higher ratio of investment to GDP. b. the United States had a higher growth rate than South Korea because it had a higher ratio of investment to GDP. c. South Korea had a higher growth rate than the United States even though it had a similar ratio of investment to GDP. d. the United States had a higher growth rate than South Korea even though it had a similar ratio of investment to real GDP.
In making decisions about insurance:
A. you must consider it in light of the best information available at the time. B. using hindsight is the only way to truly know what the right decision was. C. you need to weigh the cost of the insurance against the benefit of payouts over the life of the contract. D. None of these statements is true.
The marginal propensity to consume is
A. disposable income divided by consumption. B. the change in consumption divided by the change in disposable income. C. consumption divided by disposable income. D. the change in disposable income divided by the change in consumption.
What is a tariff?
a specific limit on the quantity of an import (import quota) a specific limit on the quantity of an export a tax on an import a government subsidy that pays part of the exporter's production costs