In recent decades, countries with high economic growth have experienced _______ inequality, and those with low rates of growth have experienced __________ inequality.

For a good such as food, the income elasticity is likely

A) negative. B) equal to zero. C) positive and less than one. D) positive and greater than one. E) undefined because people always buy the same amount of food.

Answer the following statements true (T) or false (F)

1) When the Fed raises the interest rate paid on reserves, it discourages bank lending. 2) When the Fed pays interest on reserves held at Fed banks, the interest rate used is the discount rate. 3) The prime interest rate and the federal funds rate normally change in opposite directions. 4) The largest single liability of the Federal Reserve Banks is their outstanding loans to commercial banks.