The Fed Can Change the Federal Funds Rate by Issuing

question 23

True/False

The Fed can change the federal funds rate by issuing an order,but it cannot change the discount rate this way.

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Definitions:

Average Total Cost

The total cost of production divided by the quantity of output produced, encompassing both fixed and variable costs.

Total Revenue

The total income a firm receives from selling its products; calculated as the quantity sold multiplied by the price per unit.

Total Cost

The sum of fixed and variable costs incurred by a business in the production of goods or services.

Profit

The financial gain achieved when the revenue gained from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.