The Federal Reserve Banks are bankers’ banks. Explain.
What will be an ideal response?
This means that the Federal Reserve Banks perform essentially the same functions for banks as the banks perform for the public. Just as banks and thrifts accept deposits of and make loans to the public, so the Federal Reserve Banks accept deposits and make loans to banks and thrifts.
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Along a linear consumption function,
A) the average propensity to consume rises with income, but the marginal propensity to consume falls with an increase in income. B) the marginal propensity to consume rises with an increase in income. C) the average propensity to consume falls with an increase in income. D) both the average propensity to consume and the marginal propensity to consume rise with an increase in income.
The Nash equilibrium for the game is
a. For both stores to advertise b. For megastore to advertise and for superstore not to advertise c. For megastore not to advertise and for superstore to advertise d. For both stores to not advertise
A decrease in supply is represented by a
a. movement downward and to the left along a supply curve. b. movement upward and to the right along a supply curve. c. rightward shift of a supply curve. d. leftward shift of a supply curve.
Refer to the graph shown. If a firm wants to produce 300 units of output, it should use the plant size represented by:
A. SATC1. B. SATC2. C. SATC3. D. SATC4.