When consumers or producers do not bear the full cost of their economic decisions, they tend to produce or consume more than they otherwise would
a. True
b. False
Indicate whether the statement is true or false
True
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
If the reserve ratio is designated by "r," how much of a deposit can banks lend out?
A) (1 - r) B) r / (1 - r) C) 1 / r D) 1 / (1 - r)
In response to an unanticipated easing of monetary policy, the Fed funds rate ________ at first, then ________ after 6 to 12 months
A) rises; returns most of the way to its original value B) falls; returns most of the way to its original value C) remains roughly unchanged; rises significantly D) remains roughly unchanged; falls significantly
Monopolistically competitive firms use advertising exclusively to inform customers about the real differences between their products and their competitors' products.
Answer the following statement true (T) or false (F)