If the discount rate is lowered, banks borrow
a. less from the Fed so reserves increase.
b. less from the Fed so reserves decrease.
c. more from the Fed so reserves increase.
d. more from the Fed so reserves decrease.
c
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To identify the burden of a per-unit tax on consumers, we have to use the aggregate marginal willingness to pay curve whenever the underlying good is not quasilinear.
Answer the following statement true (T) or false (F)
The early 1980s "Star Wars" space-based defensive weapons system was an example of _____
a. economic warfare b. a military alliance c. negative externality d. undefined property rights
Explain how each of the following affects the natural rate of unemployment: a . the introduction of unemployment programs that temporarily replace lost income for unemployed workers b. government funding for campus career placement centers that teach
students how to write resumes and interview, and that schedule and coordinate on-campus interviews with potential employers c. government legislation that mandates that large employers hold jobs for employees who leave to take care of infants or sick family members
In the Keynesian view, equilibrium takes place when
a. the real and nominal interest rates are equal. b. the level of total spending in the economy is equal to current output. c. current output is equal to the economy's long-run potential. d. the money supply is growing at a constant rate.