The interest rate at which depository institutions borrow reserves from the Federal Reserve is known as the
a. prime rate.
b. federal funds rate.
c. discount rate.
d. T-bill rate.
c. discount rate.
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The fact that resources tend to be specialized is one reason the production possibilities frontier is drawn
A. bowed outward. B. bowed inward. C. as a straight line (but not horizontal). D. as a horizontal straight line.
Under fixed exchange rates, domestic asset transactions by the central bank
A) can be used to alter the level of foreign reserves but not to affect the state of employment and output. B) cannot be used to alter the level of foreign reserves but only to affect the state of employment and output. C) can be used to alter the level of foreign reserves and to affect the state of employment and output. D) can be used to alter the domestic money supply and the level of foreign reserves. E) can raise output to full-employment level.
Ball found that an important factor affecting the sacrifice ratio is
A) the flexibility of the labor market. B) the shape of the yield curve. C) the real interest rate. D) the tightness of fiscal policy.
If economic profits are $100,000, and implicit costs are $50,000, how much are your accounting profits?
What will be an ideal response?