Author Question: The discount rate is the rate used by the Fed when A) the Fed extends a short-term loan directly ... (Read 96 times)

cabate · **on:** Jun 29, 2018

The discount rate is the rate used by the Fed when

A) the Fed extends a short-term loan directly to a commercial bank.
B) the Fed extends a short-term loan to one of the regional Federal Reserve banks.
C) the Fed calculates the present value of particular long-term investment projects.
D) the Fed makes cash available for the federal government.

Question 2

Suppose a market has only one seller and only one buyer of a good in the market. The buyer is willing to pay 50 for the good and the seller is willing to accept 15. The market price of the good is determined at 30.

If they trade, the social surplus will be ________. A) 15
B) 35
C) 45
D) 65