Which of the following statements is (are) correct? The Federal Reserve
a. can, over the long run, roughly control the money supply by changing the monetary base to offset any undesirable changes in the money stock as a result of changes in currency holdings or excess reserve holdings.
b. controls the money supply better in the long-run because of short-run uncertainty regarding the money multiplier.
c. is in absolute control of the money stock at all times.
d. Both a and b
D
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How much of U.S. garbage is disposed of in landfills?
a. 25 percent b. 40 percent c. 60 percent d. 70 percent e. 100 percent
A nation's standard of living: a. will increase substantially over time even for a small increase in the growth rate. b. will increase by the same amount as the increase in the growth rate
c. will decrease substantially over time even for a small increase in the growth rate. d. will increase less than the amount of the increase in the growth rate.
Explain why it is the case that the value of intermediate goods produced and sold during the year is not included directly as part of GDP, but the value of intermediate goods produced and not sold is included directly as part of GDP
If there is a negative externality involved in producing good X, then
A. engaging in international trade will solve the inefficiency. B. a subsidy to the producer of good X can correct the inefficiency involved. C. the production possibility curve will be too steeply sloped toward good X. D. None of these is true.