Merit goods
A. are provided for those who behave themselves and play nice.
B. should be provided even if there is no demand for them.
C. increase in costs along with demand.
D. none of these answer options are correct.
B. should be provided even if there is no demand for them.
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The pollution created when coal is burned by utilities to generate electricity is an example of ________
A) a marginal benefit to coal producers B) a welfare cost C) an external cost D) a cost paid by the utilities
The equation of exchange states that:?
?a) government spending = taxes plus the federal budget deficit. ?b) the reciprocal of the reserve requirement = the deposit expansion multiplier. ?c) the money supply times the velocity of money = the price level times the quantity of goods and services produced. ?d) the price level times the velocity of money = the money supply times the quantity of goods and services produced.
Any target value of the nominal interest rate chosen by the Federal Reserve implies a specific value for ________.
A. potential output B. the budget deficit C. government purchases D. the money supply
An increase in real interest rates in the United States
a. discourages both U.S. and foreign residents from buying U.S. assets. b. encourages both U.S. and foreign residents to buy U.S. assets. c. encourages U.S. residents to buy U.S. assets, but discourages foreign residents from buying U.S. assets. d. encourages foreign residents to buy U.S. assets, but discourages U.S. residents from buying U.S. assets.