The] federal open market committee raised its target on the federal-funds rate by 0.25 percentage point to 5.0%, hoping to cool demand in the robust economy and stave off any possible buildup in price many economists said a rate rise would be the economy generally still enjoys noninflationary growth driven by productivity gains. the economy expanded at a very strong annual 4.8% clip in the third quarter with few signs of inflationary pressures, in part because of the 4.2% jump in productivity. productivity gains allow businesses to hold the line on prices while paying higher wages.   according to the passage, what was the federal-funds rate before the rate increase? a. 5.0% c. 4.8% b. 4.75% d. 5.25%

Self-interest achieve society’s economic goals because producers know which goods consumers want the most. as consumers and producers exercise their freedom to act in their own self-interest, markets will produce the desired goods at the lowest possible cost. consumers and producers both operate based on society’s economic goals. consumers know which goods can be produced at the lowest cost. there is a wide variety of desired goods and services in a market system because producers determine what to produce. consumers change their minds frequently. there is always a need to produce something new and improved. individual wants are diverse. what is produced is ultimately determined by consumers, because if the goods offered are not what consumers want, consumers will not buy them. producers, because they are driven by profits. producers, because they determine what to produce. consumers, because they participate in marketing surveys.

In a chapter 7 bankruptcy, a debtor:

Which of the following best describes the economic effect that results from the government having a budget surplus? a. consumers save more and spend less, enabling long-term financial planning. b. overall demand decreases, reducing the incentive for producers to increase production. c. banks have more deposits, enabling them to make more loans to investors. d. government spending increases, increasing competition for goods and services and driving prices up.