Which of the following is an advantage of open market operations over other Federal Reserve policy tools?
a. Use of the other tools must be approved by the President.
b. Use of the other tools must be approved by Congress.
c. Open market operations are more precise.
d. Open market operations do not change interest rates.
e. The U.S. Treasury and the Fed work together to undertake open market operations.
C
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Refer to the above figure. The marginal cost of pollution abatement is curve
A) (1). B) (2). C) (3). D) (4).
Insurance companies provide higher insurance premiums to plans with lower deductibles as a way of:
A. screening between types of drivers. B. avoiding moral hazard. C. reducing the lemons problem. D. optimizing information acquisition.
Markets fail to maximize total surplus when:
A. individual choices impose costs or benefits on others. B. society's choices impose costs or benefits on other societies. C. when all costs and benefits are received by participants in transactions. D. producer surplus is not exactly equal to consumer surplus.
Consumption expenditure tends to increase when consumers have higher levels of debt
a. True b. False Indicate whether the statement is true or false