A(n) ______ subsidy is a subsidy on a good with external benefits.
Fill in the blank(s) with the appropriate word(s).
Ans: Pigouvian
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The long-run supply curve for a competitive industry always has a positive slope
a. True b. False Indicate whether the statement is true or false
If the Fed unexpectedly shifts to a more restrictive monetary policy, which of the following will most likely occur in the short run?
a. a decrease in the real interest rate b. an increase in unemployment c. an increase in real GDP d. an increase in inflation
Bank regulation differs from monetary policy, because:
a. Monetary policy is concerned with controlling and monitoring the conduct, performance, and condition of financial institutions, but bank regulation is concerned with changing the monetary aggregates. b. Regulation is concerned with changing reserve requirements, open market operations, and the discount rate, but monetary policy is concerned with changing the domestic interest rates. c. Regulation is concerned with changing domestic interest rates, but monetary policy is concerned with changing reserve requirements, open market operations, and the discount rate. d. Regulation is concerned with controlling and monitoring the conduct, performance, and condition of financial institutions, but monetary policy is concerned with changing the monetary aggregates.
When two variables have a negative correlation and the x-variable decreases,
a. the y-variable increases. b. the y-variable decreases. c. the y-variable stays the same. d. the x-variable can never be positive.