Question

1. Explain the Fed Rule as you understand it 2. Explain how the Fed controls interest rates 3. Define lender of last resort 4. If you loan out $1,000 today and receive $1,170 a year from now, what is your rate of return? 5. If you are comfortable lending money at 30% interest and someone offers to give you $1,000 a year from now, how much would you be willing to loan them today? 6. Define the four key characteristics of perfect competition 7. Define what a market failure is 8. Identify why a monopoly can persist 9. Identify why a monopoly can result in a social cost and a social benefit 10.Explain why international trade is important 11.Explain monopolistic competition 12.Identify two different types of advertising 13.Identify two different areas where consumer protection through government regulation is necessary and effective 14.Identify two major issues caused by global poverty 15.Explain what the Lorenz curve illustrates

Answer 1