When the economy is at full employment __________ interest rates are __________ by an expansionary monetary policy if inflationary expectations are generated
A) real; decreased
B) real; not changed
C) nominal; decreased
D) nominal; not changed
B
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Answer the following statement(s) true (T) or false (F)
1. A non-congested toll road is an example of a good that is excludable, but not rivalrous in consumption. 2. Public goods can frequently be provided by private action when the resulting benefits are widespread. 3. All economists agree that a public good is one the is nonrivalrous and nonexcludable. 4. When a public goods increases the desirability of living in a certain area, benefits tend to be captured entirely by an increase in land values. 5. In a Clarke tax scheme, the amount of tax that a person pays depends, in part, on his revealed preference for the public good.
Rent controls are designed to protect consumers from high rents.
Answer the following statement true (T) or false (F)
The primary tool utilized by the Federal Reserve today in conducting monetary policy is
a. the discount rate. b. reserve requirements. c. open market operations. d. selective credit controls.
The largest percent of colonial trade (both exports and imports) was with
(a) the United Kingdom. (b) Southern Europe. (c) Africa. (d) the West Indies.