The interest rate charged for loans through the discount window is called the:
A. discount rate.
B. reserve rate.
C. interest rate.
D. prime rate.
A. discount rate.
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Good A is an inferior good. If the price of good A were to suddenly double, the substitution effect would cause the purchases of good A to increase by
A) more than double. B) exactly double. C) less than double. D) Any of the above are possible. E) none of the above
If the average propensity to consume is initially 0.8, the marginal propensity to consume is 0.75, and real disposable income increases by $1000, the new value of saving is
A) $200. B) $250. C) $800. D) $750.
Between 1800 and 1940, the U.S. birthrate fell steadily. Factors contributing to this downward trend include:
a. urbanization. b. rising female employment. c. compulsory schooling d. declining infant mortality. e. all of the above.
Which of the following does not reduce the potential burden of an increase in debt on future generations?
a. the growth rate of output is high b. in response to increased debt, parents save more to leave their children larger bequests c. budget deficits raise interest rates d. All of the above are correct.