When we say that one of the functions of the Fed is to be a lender of last resort, we mean that the Fed:

A. provides funds to troubled banks that cannot find any other source of funds.
B. serves as a clearinghouse for interbank payments.
C. sets reserve requirements.

Answer: A. provides funds to troubled banks that cannot find any other source of funds.

Economics

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If Melissa owns a software company that incurs no fixed costs, then

A) her total cost equals her total variable cost. B) she will earn an economic profit. C) her total variable cost is less than her total cost. D) her total cost equals zero. E) her marginal cost must equal zero.

Economics

There are only two goods for John to consume: food and clothing. If clothing is an inferior good for John when his income rises to $100,000, then food is

A) also an inferior good. B) a normal good. C) Either inferior or normal could be possible. D) Not enough information

Economics