The discount rate:
A. is the rate of interest charged by the Fed when it lends money to private banks.
B. is the reduction in the prime rate that big banks provide to corporate borrowers.
C. is always equal to the market rate minus the core rate of inflation.
D. is the rate that private banks charge other private banks for a loan.
A. is the rate of interest charged by the Fed when it lends money to private banks.
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Player 1 and Player 2 are playing a game in which Player 1 has the first move at A in the decision tree shown below. Once Player 1 has chosen either Up or Down, Player 2, who can see what Player 1 has chosen, must choose Up or Down at B or C. Both players know the payoffs at the end of each branch. 
What is the equilibrium outcome of this game?
A. Player 1 chooses Down and Player 2 chooses Up. B. Player 1 and Player 2 both choose Down. C. Player 1 chooses Up and Player 2 chooses Down. D. Player 1 and Player 2 both choose Up.
A financial system is a means of bringing together savers and borrowers.
Indicate whether the statement is true or false.
By integrating vertically,
a. firms trade with one another through markets b. firms trade with one another through government intermediation c. firm and market processes are connected to produce a good or service most efficiently d. the various procedures involved in producing a good are collected within one firm e. the various procedures involved in producing a good are parceled out among various contractors
A decrease in the price level makes consumers feel wealthier, so they purchase more. This logic helps explain why the aggregate-demand curve
a) is vertical. b) slopes upward. c) is horizontal. d) slopes downward.