When a bank receives a $50 million discount loan from the Federal Reserve, the bank's reserves
A) remain the same.
B) increase by less than $50 million.
C) increase by $50 million.
D) increase by more than $50 million.
C
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Based on the table above which shows Chip's costs, if rice sells for $600 a ton, Chip's profit-maximizing output is
A) less than one ton. B) between two and three tons. C) between three and four tons. D) between one and two tons.
The Treasury yield curve will be downward sloping when
A) investors expect future short-term interest rates to be significantly lower than current short-term interest rates. B) investors expect future short-term interest rates to be significantly higher than current short-term interest rates. C) short-term interest rates are significantly lower than long-term interest rates. D) short-term interest rates are equal to long-term interest rates.
Markets tend to underallocate resources to the production of a good when
A) there are negative externalities. B) there are positive externalities. C) there are public goods produced. D) equilibrium occurs.
With specialization
A) opportunity costs tend to be constant. B) there are greater gains in material well being. C) there is more emphasis on self-reliance. D) society is more productive while individuals are less productive.