If the economy is inflationary, the Fed would most likely:
a. encourage banks to provide loans by buying government securities.
b. encourage banks to provide loans by raising the discount rate.
c. encourage banks to provide loans by selling government securities.
d. restrict bank lending by selling government securities.
e. restrict bank lending by lowering the federal funds rate.
d
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Lauren makes $150 a day as a bank clerk. She takes two days off work without pay to fly to another city to attend the concert of her favorite band. The cost of transportation and lodging for the trip is $250. The cost of the concert ticket is $50. The opportunity cost of Lauren's decision to attend the concert is
A. $600. B. $450. C. $250. D. $300.
Terence has $50 per week to spend on Subway sandwiches and milkshakes. The price of a Subway sandwich is $5 and the price of a milkshake is $4. He buys 6 sandwiches and 5 milkshakes
The marginal utility of the 6th sandwich = 25 and the marginal utility of the 5th milkshake = 24. Which of the following is true? A) He is maximizing his utility. B) He is not maximizing his utility and should buy more Subway sandwiches. C) He is not maximizing his utility because he is not spending all of his income. D) He is not maximizing his utility and should buy more milkshakes.
An advantage of a functional division is that performance is
a. More easily measured b. More difficult to measure c. Not measured d. None of the above
Which of the following is the largest single component of the market basket used to compute the consumer price index (CPI)?
A. food and beverages B. housing C. transportation D. medical care