What does it mean when the Federal Reserve is referred to as a lender of last resort?
What will be an ideal response?
As a lender of last resort, the Federal Reserve has the authority to create new money and lend that money to banks during banking panics.
Economics
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If society were to maximize the utility of its worst-off member, the final allocation would most likely be
A) relatively egalitarian. B) on the contract curve. C) Pareto-efficient. D) one in which one person gets everything.
Economics
Suppose that the absolute price elasticity of demand for hamburger is 1.15 and that the absolute price elasticity of demand for steak is 2.4. Then the absolute price elasticity of demand for beef will be
A) less than 1.15. B) more than 2.4. C) between 1.15 and 2.4. D) equal to 1.15.
Economics