You place $100 in a bank account that pays 8%. If you remove the interest you receive each year you can turn your stock into a flow of
A) $108 per year.
B) $100 per year.
C) $80 per year.
D) $8 per year.
D
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For some fisheries in the U.S., the state or federal government imposes "gear restrictions" that limit the size of boats, nets, or other equipment that may be used to harvest the fish in a given body of water
The purpose of the gear restrictions is to: A) prevent everyone from using the common property resource (fish). B) make it harder for other members of society to harvest the resource. This reduces the opportunity cost of the resource for other members of society, and the marginal social cost is closer to the private cost. C) increase the private cost of using the resource so that the private cost is closer to the marginal social cost. D) maintain traditional ways of harvesting fish, which is valuable for promoting tourism.
If the Fed lowered the required reserve ratio,
a. excess reserves would decrease b. the money supply would decrease c. the money supply would increase d. banks would borrow more from the Fed e. loans would earn more interest
The equilibrium level of GDP is always accompanied by full employment and stable prices
a. True b. False Indicate whether the statement is true or false
Keynesians believe a change in the money supply cannot lower the unemployment rate.
a. true b. false