Economics for Business

Could someone help with the following true/false questions and explain the answer? Your help is greatly appreciated:) Q. The Federal Funds rate is the interest rate banks charge each other. Q. The primary purpose of the FOMC is to enforce bank regulations.

Effect on short-term interest rates if Fed sells government bonds

If the Federal Reserve sells government bonds, will short-term interest rates increase or decrease? Explain how this will affect aggregate demand and the rate of growth of the economy.

Limitations on the Fed to expand the money supply

Describe the limitations on the ability of the Fed to expand the money supply.

Price discrimination is often defended on the basis of equity. What is meant by this statement? Comment on its validity.

Please help me so I can complete the following: Please write your response in an essay format. The two essays must be well structured and with a quality that is commensurate with graduate level writing standards. 1. Price discrimination is often defended on the basis of equity. What is meant by this statement? Comment on its validity. 2. Because credit card companies and banks must charge the same interest rate on credit cards to all borrowers, there is an adverse selection problem with credits card. How does a credit card company or firm know whether a person will be a high-quality borrower (i.e., one who pays the debts) or a low-quality borrower (i.e. one who does not pay debts)? ... click for more

Why is controlling the supply of money in the economy important?

Why is controlling the supply of money in the economy important?