A pizza parlor's rent is

A reduction of the discount rate by the Federal Reserve Banks has the direct effect of

A) making it less costly for commercial banks to borrow from the Fed. B) making it more costly for the Treasury to finance deficits. C) increasing commercial bank reserves. D) increasing the stock of money. E) doing all of the above.

Indifference curves that lie below the budget line provide higher levels of utility, but they represent combinations that are not affordable

a. True b. False Indicate whether the statement is true or false