A decrease in the discount rate:
a. increases reserve holdings of the commercial banks.
b. leads to an increase in the interbank rate charged by commercial banks.
c. lowers the cost of borrowing from the Fed.
d. causes an increase in the federal funds rate.
e. decreases the money supply.
c
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If production point is inside the production possibilities frontier
A) it is not possible to produce more of both goods. B) production is inefficient. C) in order to produce more of one good, less of the other must be produced. D) production is in the "unattainable" region.
The U.S. military aircraft industry sought protection from foreign competition by using the __________ argument to persuade Congress to impose trade restrictions
a. infant industries b. diversity of industries c. retaliation d. antidumping e. national security
Xavier’s country has 1 million acres of land it uses in farming. In contrast, Dominic’s country has 100 million acres of farmland. If each country uses irrigation techniques to add 100,000 acres of farmland, how will productivity in each country be impacted?
a. Neither Xavier’s nor Dominic’s country will experience an increase in productivity. b. Both Xavier’s and Dominic’s countries will experience a small increase in productivity. c. Dominic’s country will experience a relatively large increase in productivity, while Xavier’s country will experience a relatively small increase in productivity. d. Xavier’s country will experience a relatively large increase in productivity, while Dominic’s country will experience a relatively small increase in productivity.
What is a balance-of-payments surplus?
What will be an ideal response?