If the Fed increases the discount rate,
A) commercial banks pay a higher interest rate if they borrow from the Fed.
B) commercial banks find it more profitable to increase their loans to businesses.
C) commercial banks increase their lending to the Fed.
D) commercial banks' assets increase.
E) commercial banks pay a lower interest rate if they borrow from the Fed.
A
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Assuming that the demand and supply of a good both increased by the same amount, the new equilibrium would represent: a. an increase in price and an increase in quantity exchanged
b. no change in price and an increase in quantity exchanged. c. a decrease in price and a decrease in quantity exchanged. d. no change in price, and an indeterminate change in quantity exchanged.
When the inflation rate exceeds the expected rate, the economy behaves like it does in a ________ inflation: The price level is higher than expected and real GDP ________ potential GDP.
Fill in the blank(s) with the appropriate word(s)