- Chapter 15.1: Why should ordinary Americans pay attention to the actions of the F...
- Chapter 15.2: Which group of Federal Reserve officials decides monetary policy? W...
- Chapter 15.3: How is a bank holding company different from a bank?
- Chapter 15.4: What are two services provided by the Fed that do not involve regul...
Solutions for Chapter Chapter 15: The Fed and Monetary Policy
Full solutions for Economics: Principles and Practices, Reading Essentials and Study Guide, Workbook | 1st Edition
total revenue divided by the quantity sold
average total cost
total cost divided by the quantity of output
average variable cost
variable cost divided by the quantity of output
a certificate of indebtedness
a government regulation specifying a minimum amount of bank capital
the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it
the interest rate on the loans that the Fed makes to banks
total revenue minus total cost, including both explicit and implicit costs
a measure of the responsiveness of quantity demanded or quantity supplied to a change in one of its determinants
the property of a good whereby a person can be prevented from using it
internalizing the externality
altering incentives so that people take account of the external effects of their actions
the process by which workers find appropriate jobs given their tastes and skills
marginal tax rate
the amount that taxes increase from an additional dollar of income
a situation in which a market left on its own fails to allocate resources efficiently
negative income tax
a tax system that collects revenue from high-income households and gives subsidies to lowincome households
a good for which, other things being equal, an increase in income leads to an increase in demand
the relationship between quantity of inputs used to make a good and the quantity of output of that good
a tax for which highincome and low-income taxpayers pay the same fraction of income
a tax for which highincome taxpayers pay a smaller fraction of their income than do low-income taxpayers
two goods for which an increase in the price of one leads to an increase in the demand for the other