Which of the following statements is true of the federal funds market?
A) No banks are refused loans in the federal funds market.
B) Although the federal funds market aims to provide liquidity to needy banks, it is not very popular as overnight loans are logistically inefficient for large banks.
C) In the federal funds market, banks with a shortage of reserves borrow funds, while banks with an excess of reserves lends them out.
D) The interbank lending system works more efficiently in periods of financial panic than in periods of financial stability.
C
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When the price of sausages is $2.00 per pound, consumers buy 50 pounds of hamburger. When the price of sausages rises to $3.00 per pound, 60 pounds of hamburger are purchased
The cross price elasticity of demand between sausages and hamburger is approximately equal to A) +0.04. B) -0.45. C) +2.20. D) +0.45.
Antitrust activity is not a good example of using the "power of the purse" to control administrative activities in support of political ideology
Indicate whether the statement is true or false
The theory of labor supply is based on the trade-off between __________
Fill in the blank(s) with correct word
Which of the following components are involved in microeconomics?
a. aggregate economy; firms; agricultural subsidies b. aggregate economy; households; inflation c. smaller economic units; households; income distribution d. smaller economic units; firms; business cycles