Other things constant, if the Fed decreased the discount rate,
a. the earnings of the Fed would increase.
b. the incentive of commercial banks to borrow from the Fed would be reduced.
c. borrowing from the Fed will tend to increase and the money supply will tend to expand.
d. borrowing from the Fed will tend to decrease and the money supply will tend to decline.
C
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Distinguish between physical capital and financial capital and give two examples of each
What will be an ideal response?
Which one of the following will not cause the production possibilities curve to shift outward?
a. improvements in the stock of land b. increased educational opportunities c. a very low birth rate d. increased entrepreneurial activity
If we were at point ____ it would be possible to produce more heart transplants and more round-the-world trips.
A. P
B. Q
C. R
D. S
Which of the following was true of countries willing to join the euro?
A. The countries had to maintain a debt to GDP ratio of more than 60 percent. B. The countries had to maintain bank balances in their home currencies. C. The countries had to lose the eligibility to participate in foreign trade. D. The countries had to give up the ability to use monetary policy as individual countries.