1. What is the attitude banks have toward being required to become members of the Federal Reserve System?

2. Are credit cards money? Explain why and why not....p. 292.

3. Define the Federal Funds interest rate. On the Web, FRED Macro Snapshot, what is the history of the federal funds rate from 1980 to the present? Explain the economic conditions that influenced the behavior of the federal funds rate from 2010 to the present day.

4. On the Web, what are two pro and two con arguments in the article entitled "Fed Explores...." June 12, 2021 by Victoria Guida.

{ 2920f446 > 2 Aa Glossary Note: Terms set in italic hpe are defined separately in this glossary. 45 (degree) line The reference line in a two-dimensional graph that shows equality between the variable measured on the fiorizonral avis and the variable measured on the vertical axis. In the aggregate expenditures model, the line along which the value of output (measured horizontally) is equal to the value of aggregate expendinures (measured vertically). ability-to-pay principle The idea that those who have greater income (or wealth) should pay a greater proportion of it as taxes than those who have less income (or wealth). absolute advantage A situation in which a person or country can produce more of a particular product from a specific quantity of resource inputs than some other person or country. absolute value The magnitude of a number without regard to its sign. For any number v, the absolute value of v is denoted |x|, and |x] = 4+x no matter whether v itself is a positive or negative number. Thus. |-3| = +3 and |+3| = 43. accounting profit The roral revene of a firm less its explicit costs; the profit (or net income) that appears on accounting statements and that is reported to the government for tax purposes. acreage allotments A pre-1996 government program that limited the total number of acres to be used in producing (reduced amounts of) various food and fiber products and allocated these acres among individual farmers. These farmers had to limit their plantings to the allotted number of acres to obtain price supports for their crops