The Discount Rate Is the Interest Rate That

question 30

Multiple Choice

The discount rate is the interest rate that

• A)banks charge one another for loans.
• B)banks charge the Fed for loans.
• C)the Fed charges banks for loans.
• D)the Fed charges Congress for loans.

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Definitions:

Equilibrium Price

The price at which the quantity of goods suppliers are willing to sell equals the quantity of goods consumers are willing to buy, leading to market balance.

Competitive Labor Market

A market where numerous employers and employees interact, leading to wage determination by supply and demand with minimal intervention.

Shirking

is the behavior of avoiding or evading work and responsibilities, often leading to reduced productivity within an employment context.

Efficiency Wage

A wage rate paid by employers that is above the market equilibrium to increase worker productivity and efficiency.