1. Why is it difficult for the fed to prevent recessions by lowering interest rates
A. The Fed can change the rate only once each year.
B. It can take years for local banks to change their rates.
C. The Fed's rate does not affect business loans.
D. It can take businesses years to
make large investment plans.
2. What is one reason commercial banks sometimes borrow money from the Fed?
A. to control the supply of money available to their customers
B. to maintain their reserve requirements
C. to have funds available to lend to other banks
D. to clear their customers' checks
is a sales tax a regressive tax?
3.Why is a sales tax a regressive tax?
A. It is a different amount for low incomes.
B. It is a different amount for all incomes.
C. It is a higher percentage of income if you earn more money.
D. It is a higher percentage of income if you earn less money
1. B
2. A
3. D
1 answer