____ is the rate that applies when banks borrow and lend reserves to one another.

A. The repo rate
B. The discount rate
C. The coupon rate
D. The federal fund rate


Answer: D

Economics

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Joe owns a coffee house and produces coffee drinks under the production function q = 5KL where q is the number of cups generated per hour, K is the number of coffee machines (capital), and L is the number of employees hired per hour (labor)

What is the average product of labor? A) AP = 5 B) AP = 5K C) AP = 5L D) AP = 5K/L

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A country is likely to have investment freedom if the government allows free flow of foreign capital into the domestic economy

a. True b. False Indicate whether the statement is true or false

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Define the following terms and explain their importance to the study of macroeconomics: a. open economy b. closed economy c. budget deficits and trade deficits d. international capital flows

What will be an ideal response?

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When interest rates in the U.S. increase, we can expect NCO to:

A. increase, because capital inflow is increasing. B. increase, because capital outflow is increasing. C. decrease, because capital outflow is increasing. D. decrease, because capital inflow is increasing.

Economics