Children can be viewed as retirement insurance and thus provide individuals with incentive to create large families

If a private bank lends money to another bank, the interest rate that is charged for the loan is the:

A. Discount rate B. Prime rate C. Federal funds rate D. Loan rate

Which of the following statements is FALSE?

A) When the relative price of a good falls, the substitution effect always leads the consumer to substitute more of that good for the other good. B) For a normal good, the income effect reinforces the substitution effect. C) For an inferior good, the income effect offsets the substitution effect. D) For an inferior good, the income effect is positive.