When externalities are present,
a. suppliers will refuse to produce desired goods and services.
b. this indicates that property rights are well-defined and enforced.
c. competitive market outcomes may be inconsistent with ideal economic efficiency.
d. competitive markets will generally achieve ideal economic efficiency.
C
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Which action could the Fed use to decrease the money supply?
A) a tax increase B) a decrease in the discount rate C) an increase in the required reserve ratio D) an open market purchase
Lowering the interest rate will
A) increase investment projects by firms. B) decrease the value of the dollar and lower net exports. C) decrease spending on consumer durables. D) decrease spending on new homes.
The antitrust laws in the United States were created in the late 1800s as a result of :
a. the emergence of large and dominant businesses in railroads, steel, oil, mining and finance. b. the government decision to take responsibility for the improvement of trade deficit. c. the first illegal cartel, created in late 1800s. d. a steep decline in prices of primary goods in the United States. e. the threats of an external aggression received by the country.
The inflationary effect of an expansionary monetary policy depends on the slope of the aggregate supply curve
a. True b. False Indicate whether the statement is true or false