The most common type of discount lending, ________ credit loans, are intended to help healthy banks with short-term liquidity problems that often result from temporary deposit outflows

Refer to Figure 16-2. Suppose Plato Playhouse charges a single price of Pd for each performance. Which of the following statements is true?

A) The company is selling less than the profit-maximizing quantity in the non-student market and more than the profit-maximizing quantity in the student market. B) The company is selling less than the profit-maximizing quantity in both markets. C) The company is selling less than the profit-maximizing quantity in both markets but it is maximizing its revenue. D) The company is selling more than the profit-maximizing quantity in the non-student market and less than the profit-maximizing quantity in the student market.

In a two-period model with default, the nation defaults on its debt in the current period if

A) the market interest rate is high, the cost of defaulting is low, and national debt is high. B) the market interest rate is low, the cost of defaulting is low, and national debt is high. C) the market interest rate is high, the cost of defaulting is high, and national debt is low. D) the market interest rate is low, the cost of defaulting is high, and national debt is low.