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.
Answer: C
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Measuring the effects of labor immigration shows:
a. that as workers move, they disrupt their families and cause huge costs in the recipient nation. b. that most immigrants spend months trying to find work. c. that immigration benefits the recipient nation by raising the marginal product of capital, expanding laborintensive production, and lowering prices of laborintensive goods. d. that immigration is very harmful to the host nation because of a huge increase in the unemployment rate
When the slope of the total product curve is steep, the marginal product is
A) zero. B) negative. C) high. D) low. E) not defined.