A decrease in the discount rate A) reduces the cost of ...

[vinney12]

A decrease in the discount rate
 
  A) reduces the cost of borrowing from the Fed.
  B) increases the cost of reserves borrowed from the Fed.
  C) signals the Fed's desire to decrease the money supply.
  D) signals the Fed's desire to reduce lending to commercial banks.

Question 2

When a good gets better from one year to the next, the CPI has a what is called
 
  A) commodity substitution bias.
  B) outlet substitution bias.
  C) magnitude of change bias.
  D) new goods bias.
  E) quality change bias.

[Dunkey]

Answer to Question 1

A

Answer to Question 2

E