Which of the following statements is correct?
A. The Federal funds rate is derived based on the prime rate
B. The Federal funds rate is the rate banks charge their most creditworthy customers
C. The discount rate is the rate banks charge one another on overnight loans
D. The prime rate involves longer, more risky loans than the Federal funds rate
D. The prime rate involves longer, more risky loans than the Federal funds rate
Economics
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A profit-maximizing firm should keep expanding production so long as marginal cost exceeds marginal revenue
a. True b. False Indicate whether the statement is true or false
Economics
Mathematically, the value of the tax multiplier in terms of the marginal propensity to consume (MPC) is given by the formula:
a. (MPC - 1)/MPC. b. 1-[1/(1 - MPC)]. c. 1/MPC. d. MPC - 1.
Economics