The federal funds market is the market where

a. the federal government raises funds to cover its budget deficit.
b. the Federal Reserve System makes loans to commercial banks.
c. commercial banks with excess reserves make loans to commercial banks seeking reserves.
d. commercial banks make loans to the Federal Reserve.

C

Economics

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During the last tax year you lent money at a nominal rate of 6 percent. Actual inflation was 1 percent, but people had been expecting 1.5 percent . This difference between actual and expected inflation

a. transferred wealth from the borrower to you and caused your after-tax real interest rate to be 0.5 percentage points higher than what you had expected. b. transferred wealth from the borrower to you and caused your after-tax real interest rate to be more than 0.5 percentage points higher than what you had expected. c. transferred wealth from you to the borrower and caused your after-tax real interest rate to be 0.5 percentage points lower than what you had expected. d. transferred wealth from you to the borrower and caused your after-tax real interest rate to be more than 0.5 percentage points lower than what you had expected.

Economics

Miniville is an isolated town located on the southern shore of Lake Condescending, a very large lake. The western edge of Miniville is adjacent to impassable mountains and there are no towns or businesses for many miles to the east. The 300 residents of Miniville are evenly distributed along 3 miles of shoreline on the lake, east of the mountains. Lake Shore Drive, the only street in town, provides access to Miniville's homes and businesses. All residents live between the lake and the street; businesses locate on the other side of the street. Lake Shore Drive is 3 miles long, and the points labeled A, B, and C are 1, 2, and 3 miles from the western end of Lake Shore Drive, respectively. All residents of Miniville shop at the store located closest to their homes. 

src="https://qoschin.com/media/4/ppg__rrr0818190951__f1q219g1.jpg" alt="" style="vertical-align: 0.0px;" height="117" width="538" />If the first store to open in Miniville is located at A, to maximize the number of customers it attracts, the next store to open should locate: A. at C. B. just west of A. C. at B. D. just east of A.

Economics