The possibility of a free rider exists:
a. in the presence of external costs and benefits.
b. only in the presence of external costs.
c. only in the presence of external benefits.
d. only in the presence of internal costs.
e. only in the presence of a government-produced good.
c
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If the dollar depreciates against the euro it means that French-made goods become more expensive in the United States
Indicate whether the statement is true or false
The primary factor that caused some economists to lose their faith in the Keynesian approach to macroeconomic policy was
A) the high levels of unemployment that occurred during the Great Depression. B) the presence of both high unemployment and high inflation during the 1970s. C) theoretical proof that Keynes's ideas were invalid. D) evidence that Keynes's ideas were useful during economic recessions, but not during economic booms.
The federal funds market is the market where:
a. the federal government borrows money from banks to finance the national debt. b. the federal government lends money to commercial banks. c. banks borrow money from other banks for short periods of time. d. banks borrow money from the Fed for short periods of time. e. banks borrow money from the Treasury for long periods of time.
If Brenda's MPC is 0.8 at an income of $20,000 and her income increases to $40,000 at the same time everyone else's income doubled, according to Duesenberry's relative income hypothesis, her MPC will
a. fall to 0.4 b. rise to 0.9 c. rise to 1.0 d. remain at 0.8 e. double