To signal its intention to restrict credit availability, the Federal Reserve could
A. reduce the discount rate by ¼ of a percentage point.
B. push the discount rate below the Federal Funds rate.
C. keep the discount rate equal to the Federal Funds rate.
D. increase the discount rate.
Answer: A
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Private schools are able to exclude students from attending classes they offer unless students have been accepted and paid tuition and fees. This suggests that education is
A) subject to the principle of rival consumption. B) subject to the free-rider problem. C) not subject to the exclusion principle. D) a public good.
An exchange rate is
a. the rate at which goods are traded between countries b. the rate of the net difference between exports and imports c. the denomination of currency used to purchase imports d. the price of one currency in terms of another e. the price at which one good trades for another