The interest rate the Fed charges banks borrowing from the Fed is the

In applying the lower of cost or market rule, the floor is defined as:

a) current replacement cost b) historical cost c) net realizable value d) net realizable value less a normal profit margin

Less developed countries are often characterized by imperfect capital markets. Assuming that the LCH applies to these countries and that a large proportion of the population is below fifty the

A) MPC should be relatively high. B) MPC should be relatively low. C) frequency of liquidity constraints is low. D) sensitivity of consumption to loans is low.