The discount rate
Not what you're looking for?
What would happen to GDP if a significant number of house-spouses who were previously stay home to care for their children began taking jobs and placing their children in day care? Would the nation's "well being" necessarily be better off?
Is the following statement true or false: "The 'Discount Rate' used by the Fed is the prime rate financial institutions will use when making "home loans". Why?
Purchase this Solution
Solution Summary
The discount rate is emphasized for macroeconomics of individual decisions are determined. The house-spouses who were previously stay at home are analyzed.
Solution Preview
1. The services provided by housewives to take care of their children is not included in GDP as it is a private transaction. However, the services provided by the day care centers is included in the GDP as they are paid for the services ...
Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.