By raising and lowering the discount rate, the Fed changes the
A. Level of required reserves held by individuals.
B. Incentive for banks to borrow reserves.
C. Incentive for banks to buy common stock.
D. Money multiplier.
Answer: B
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The graph of the average cost curve
A. is identical to the AVC curve. B. is above the AVC curve C. lies everywhere below the AFC curve. D. lies below the AFC curve.
The conundrum between valuable water and a relatively unusable diamond is explained by the
a) Paradox of life. b) Paradox of count. c) Paradox of utility. d) Paradox of value.
Which of the following would be an example of basic research?
A. Studies of the atmosphere on Neptune B. Research into gene therapy to treat Alzheimer's disease C. A pharmaceutical company's research into a chemical compound that could reduce the growth rate of cancer cells D. Studies of circuit miniaturization for applications in computers
Economists use the phrase ceteris paribus to express the assumption
A. "everything affects everything else." B. "there is no such thing as a free lunch." C. "all else equal." D. "scarcity is a fact of life."