If the Fed wishes to increase the money supply, it could:
A. buy bonds.
B. increase the reserve requirement.
C. increase the discount rate.
D. print more currency.
A. buy bonds.
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In perfect competition, environmental externalities need not distort the allocation of resources providing:
a. transactions costs are zero. b. average costs are constant for all output levels. c. firms install pollution control equipment. d. the government sets realistic pollution standards.
The long-run aggregate supply curve is vertical, and the short-run aggregate supply curve is upward sloping
a. True b. False Indicate whether the statement is true or false
List the factors that influence the supply of loanable funds and the factors that influence the demand for loanable fund.
What will be an ideal response?
When the consumer price index rises, the typical family
a. has to spend more dollars to maintain the same standard of living. b. can spend fewer dollars to maintain the same standard of living. c. finds that its standard of living is not affected. d. can offset the effects of rising prices by saving more.