What does it mean that the Fed is the lender of last resort?
a. The Fed is the only institution that lends to banks.
b. The Fed lends to banks before other institutions will loan money to them.
c. The Fed lends to banks when no one else will loan money to them.
d. The Fed ensures that other institutions will lend money to banks.
c. The Fed lends to banks when no one else will loan money to them.
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Which of the following statements is true? a. Federal budget deficits became progressively smaller during the 1990s and turned into a surplus by 1998
b. Federal spending declined relative to GDP, while federal revenues rose relative to GDP during the 1980s. c. Functional finance says that policy makers should be concerned less with the economy's potential output and more with balancing the budget annually. d. A disadvantage of functional finance is that it increases the level of unemployment during recessions. e. A disadvantage of annual financed budget is that it dampens swings in the business cycle without increasing the national debt.
An efficient clinic
A. will have higher costs than other clinics with similar quality of care. B. will have lower quality than other clinics with similar costs. C. will have higher margins than an inefficient competitor. D. will produce substandard care.