External benefits cause the market to:
A. underallocate resources.
B. be more efficient.
C. set excessively high prices.
D. have persistent shortages.
Answer: A
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Actual reserves are equal to
A) required reserves plus fractional deposits. B) excess reserves plus liabilities. C) minimum balances plus desired reserves. D) government securities plus cash in the bank's vault. E) desired reserves plus excess reserves.
The practice of "monetizing the debt" is traditionally feared because it is thought to cause
A) unemployment. B) inflation. C) a falling price level. D) a liquidity trap.
In Japan, the market value of the land is approximately four times that of all the land in the United States, even though Japan is only about the size of California. The most likely explanation for this fact is
a. greater demand for land in Japan relative to the supply than in the United States. b. land is very productive in Japan. c. land is not fixed in supply in the United States. d. Japanese workers are very productive.
A higher interest rate makes _____ more attractive. Therefore the quantity of loanable funds supplied increases
Fill in the blank(s) with correct word