Raising the discount rate is:
a. an expansionary policy because it raises the ratio of excess to total reserves in the banking system
b. a contractionary policy on the part of the member banks of the Fed because it raises the firms' costs of borrowing from them.
c. a contractionary policy on the part of the Fed because it raises the commercial banks' cost of borrowing from it.
d. an expansionary policy on the part of the member banks of the Fed because it raises their profits relative to those of the nonmember banks.
e. an expansionary policy on the part of the Fed because increasing the interest rates that the banks are allowed to charge will increase their willingness to make loans.
c
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If there is a positive relationship between two variables,
A) the graph of the relationship will be downward sloping. B) the graph of the relationship will be upward sloping. C) the slope of the line graphing the relationship will be negative. D) Both answers A and C are correct. E) Both answers B and C are correct.
The base year is 2012. A country only produces Blu-ray players. The price of a Blu-ray player in 2012 was $100. The price of a Blu-ray player was $90 in 2013
The quantity of Blu-ray players produced in 2012 was 10,000 units and in 2013 was 10,500 units. Real GDP in 2012 equals A) $945,000. B) $1,000,000. C) $900,000. D) $1,050,000. E) an amount that cannot be determined without information about real GDP in 2007 .