The primary credit rate refers to the rate at which
A. banks lend to their best customers.
B. banks lend to one another to meet reserve requirements.
C. the Federal Reserve charges banks (with excellent credit) for loans.
D. none of these options are correct.
Answer: C
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Which of the following would be most likely to improve the standard of living of a less-developed country?
a. Development of strong labor unions. b. More foreign investment, attracted by the expectation of economic and political stability. c. Adoption of trade barriers (higher tariffs and quotas). d. Widespread use of price controls to allocate goods and resources.
Which statement is true?
A. The psychological theory of business cycles is an exogenous theory. B. All business cycle theories are exogenous. C. The war theory is an endogenous business cycle theory. D. The monetary theory is an endogenous business cycle theory.
The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week. Between points A and B, the slope of the line is ________ the slope of the line between points B and C
A) greater than B) equal to C) less than D) unrelated to E) not comparable to