The discount rate is the interest rate that
a) Banks charge one another for loans.
b) Banks charge the Fed for loans.
c) The Fed charges banks for loans.
d) The fed charges congress for loans.
Ans: c) The Fed charges banks for loans.
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Indicate whether the statement is true or false
Specialization describes the occurrence when a country shifts resources to focus on producing a good that offers ____________ advantage and the lowest opportunity cost.
a. marginal b. comparative c. minimal d. profit
Suppose the European Union has a Nominal GDP of 20 trillion Euros, and their GDP deflator is 125. What is the European Union’s Real GDP?
A. 25 trillion Euros B. 16 trillion Euros C. 0.16 trillion Euros
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A. the inverse of the opportunity cost of shelter in terms of food. B. Ps/Pf. C. Pf/Ps. D. zero.