In recent years, the Fed has generally set the discount rate
a. lower than the federal funds rate to help financially troubled banks get more solvent.
b. higher than the interest rate on 30-year fixed-rate mortgage loans.
c. higher than the federal funds rate for most banks.
d. equal to the rate of inflation.
C
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If total output increases from $100 billion to $200 billion as population increases from 100 million to 150 million, then output per person:
A. doubles. B. decreases C. increases, but by less than 100 percent. D. remains constant.
Refer to Figure 21.1. The middle 20% of the population earn ________ of total income
A) 16% B) 23% C) 28% D) 32%
Assuming a market price of $4, fill in the columns in the following table. What is the profit-maximizing level of production? What are the two ways to determine the profit-maximizing level of production?
Quantity Total Revenue (TR) Total Cost (TC) Profit Marginal Revenue (MR) Marginal Cost (MC) 0 3 1 5 2 6 3 9 4 14 5 20 6 28 7 40
Everything else held constant, if aggregate output is to the ________ of the IS curve, then there is an excess supply of goods which will cause aggregate output to ________
A) right; fall B) right; rise C) left; fall D) left; rise