A decrease in the discount rate:
A. reduces the cost of borrowing from the Fed.
B. signals the Fed's desire to decrease the money supply.
C. signals the Fed's desire to reduce lending to commercial banks.
D. increases the cost of reserves borrowed from the Fed.
Answer: A
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An investment demand curve shows the varying amounts of investment that would be undertaken at various levels of
A. personal saving. B. the real interest rate. C. the average price in the economy. D. consumer spending.
The table above shows data reported by the Office for National Statistics for the United Kingdom in September 2000. In September 2000, the labor force participation rate is
A) 34.8 percent. B) 40.3 percent. C) 63.1 percent. D) 58.3 percent. E) 59.7 percent.
The decrease in consumer surplus and producer surplus that results from an inefficient level of production is called the
A) external cost. B) external benefit. C) deadweight loss. D) big tradeoff.
Figure 6-6
The purchase of premium cable channels is an “all-or-nothing” choice. Which graph in Figure 6-6 best illustrates the cable market demand curve?
A. 1 B. 2 C. 3 D. 4