The effect of an increase in investment on real GDP will be greater, the larger the:
a. MPC.
b. APC.
c. MPS.
d. APS.
a
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Which of the following might increase the MB of eliminating lead pollution in water?
A. Companies are producing less and therefore polluting less in the water. B. Fewer people suffer from the effects of lead pollution. C. A new study found out that lead is even more dangerous than previously thought. D. Companies have found a cheaper way to decrease lead pollution.
Who are the only ones not affected when a Pigouvian subsidy is implemented for a positive externality in a market?
A. Producers B. Consumers C. Those affected by the externality D. All of these groups are affected when it becomes internalized.
Suppose that the rate of interest increases. What will happen to the discounted present value of an investment?
a. It will increase. b. It will decrease. c. It will remain unchanged. d. It depends on the magnitude of the change.
The equivalent to the Federal Reserves discount rate in the European System of Central Banks is the