When the Fed lowers the discount rate, it:
a. lowers the cost of borrowing from the Fed, encouraging banks to make loans to the general public.
b. raises the cost of borrowing from the Fed, discouraging banks from making loans to the general public.
c. increases the amount of excess reserves that banks hold, encouraging them to make loans to the general public.
d. increases the amount of excess reserves that banks hold, discouraging them from making loans to the general public.
e. decreases the amount of excess reserves that banks hold, discouraging them from making loans to the general public.
a
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Which of the following has been offered as a possible explanation to the evidence that the exchange-rate pass-through effect to import prices has been declining in developed economies?
A) That foreign exporters have been increasingly adopting "pricing-to-market" policies. B) That transaction costs have decreased in recent years. C) That global leaders have encouraged this phenomenon. D) That the share of imports with prices more sensitive to exchange rates has been increasing.
Supply-side economics calls for:
a. lower taxes on businesses and individuals. b. All of the answers are correct. c. regulatory reforms to increase productivity. d. government subsidies to promote technological advance.
The marginal benefit of additional information:
A. is independent of the amount of information that has already been acquired. B. rises as more information is collected. C. falls as more information is collected. D. tends to be lower for expensive items than inexpensive items.
Recall the Application about federal quality standards in the market for kiwifruit to answer the following question(s).Recall the Application. After the federal marketing order in 1987, why were the California kiwifruit more likely to be sweet?
A. The federal order required a minimum maturity standard. B. The federal order required that California kiwifruit farmers take lessons from New Zealand farmers. C. The trees were still young in 1987 started to get older and produced better fruit. D. The federal order required that sweet California kiwifruit must be sold only in California.