The federal funds rate is
a. the minimum rate associated with the amount of reserves the Fed requires a bank to hold
b. the interest rate that the Fed charges banks who borrow from it
c. the interest rate charged by banks that lend reserves to other banks for short periods of time
d. the maximum rate of the price of a stock that can be borrowed from a bank, with the stock offered as collateral
e. an appeal by the Fed to banks, asking for voluntary compliance with the Fed's policies concerning interest rates
C
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The expansion of human capital and the discovery of new technologies ________ because ________
A) decrease real GDP; they shift the productivity curve downward B) increase real GDP; they result in a movement upward along the productivity curve C) increase real GDP; they shift the productivity curve downward D) increase real GDP; they shift the productivity curve upward E) decrease real GDP; they shift the productivity curve upward
Briefly and concisely define the following terms and explain their importance in the study of economics. a. excess capacity theorem b. price leadership c. kinked demand curve d. perfectly contestable market
What will be an ideal response?
Consider two points on the PPF: point A, at which there are 50 oranges and 100 apricots, and point B, at which there are 51 oranges and 98 apricots. If the economy is currently at point B, the opportunity cost of moving to point A is
A) 2 apricots. B) 1 orange. C) 98 apricots. D) 3 oranges.
Assuming the effect of a specific outcome being tested is zero is known as
A. the null hypothesis. B. regression discontinuity. C. a statistical anomaly. D. a zero-sum game.