The reason that the Fed does not actively use discount rate policy to control the money supply is because the Fed
a. acts when a majority of member banks agree on policy and the banks rarely agree.
b. earns interest on discounting and cannot afford to lose the revenue.
c. does not know how banks will respond to discount rate changes.
d. has been directed by Congress to set the discount rate at a permanent level.
c
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Emma consumes only tacos and pizza. They are substitute goods for her. The price of a taco falls. Emma will buy ________ tacos and her marginal utility from the last slice of pizza she eats ________
A) more; does not change B) more; decreases C) the same quantity; does not change D) less; increases
High opportunity costs go hand in hand with high money costs in a properly functioning economy
a. True b. False Indicate whether the statement is true or false