The Federal Government Requires a Car Manufacturer to Have a Minimum

question 34

Multiple Choice

The federal government requires a car manufacturer to have a minimum miles per gallon (mpg) average over the models it makes. Suppose that the average mpg for the four models manufactured is 24 mpg and the government standard is 31 mpg. The manufacturer will add a model. What mileage must the new model get so that the manufacturer meets the government
Requirement?

• A) 32 mpg
• B) 38 mpg
• C)59 mpg
• D) None of the above

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Definitions:

U.S. Interest Rates

The rate at which borrowers are charged for borrowing money or the rate earned by investors when lending money, set by central and commercial banks in the United States.

Depository Institutions Deregulation and Monetary Control Act

A 1980 United States federal law that deregulated banks and other depository institutions to help improve the Federal Reserve's control over monetary policy.

Fed's Legal Reserve Requirements

The minimum reserves each bank must hold to customer deposits and notes, as mandated by the Federal Reserve.

Reserve Requirement

The amount of funds that a bank must hold in reserve against deposits made by its customers, a regulatory measure to ensure banks can meet withdrawal demands.