The discount rate:
A. is the rate of interest charged by the Fed when it lends money to private banks.
B. is the reduction in the prime rate that big banks provide to corporate borrowers.
C. is always equal to the market rate minus the core rate of inflation.
D. is the rate that private banks charge other private banks for a loan.
A. is the rate of interest charged by the Fed when it lends money to private banks.
Economics
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At the equilibrium level of aggregate expenditure, what does aggregate expenditure equal? What happens at other levels of real GDP to bring about an equilibrium?
What will be an ideal response?
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When OPEC raised the price of oil, it created a:
A. demand-pull inflation. B. cost-push inflation. C. demand-push inflation. D. cost-pull inflation.
Economics