If the Fed increases the discount rate, commercial banks pay a ________ interest rate if they borrow money from the Fed and will therefore ________
A) higher; borrow more money from the Fed and make more loans to consumers
B) higher; deposit more money into their reserves at the Fed
C) lower; borrow more money from the Fed and make more loans to consumers
D) lower; borrow less money from the Fed and make fewer loans to consumers
E) higher; borrow less money from the Fed and make fewer loans to consumers
E
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Refer to Table 2-17. Which of the following statements is true?
A) Lucy has a comparative advantage in making both products. B) James has a comparative advantage in making both products. C) Lucy has a comparative advantage in making tricycles and James in making wagons. D) Lucy has a comparative advantage in making wagons and James in making tricycles.
In the U.S. economy, a large portion of investment decisions are made by
A. households. B. the private sector. C. the public sector. D. international organizations.