Dina is driving to work on an interstate highway at 90 MPH, well in excess of the legal speed of 65 MPH. Sandy is also driving to work at the same time, going 85 MPH. A state trooper pulls Dina over and gives her a speeding ticket. Sandy continues driving, but if Dina had not been speeding, the trooper would have ticketed Sandy instead. In terms of externalities, this story shows that:
a. Sandy's actions gave Dina a positive externality.
b. Dina's actions gave Sandy a positive externality.
c. Sandy's actions gave Dina a negative externality.
d. Dina's actions gave Sandy a negative externality.
e. Dina's and Sandy's actions did not create any externalities.
b
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The U.S. exports computers with a domestic price of $100,000 and the yen/dollar exchange rate is 120 on January 1, 2003. On January 1, 2004 the yen/dollar exchange rate is 125
What is the yen price of the computers on January 1, 2003? What is the yen price of the computers on January 1, 2004?
The business cycle is actually a continuous series of different __.
A. short-run macroeconomic equilibriums B. potential GDP values C. full-employment equilibriums D. nominal GPD vales
An increase in the reserve supply
A. will result in inflation if the unemployment rate is high. B. causes interest rates to rise. C. shifts the aggregate demand curve inward. D. will probably cause inflation if the economy is at potential GDP.
As global financial markets become more intertwined, the Fed has
A. more control over fiscal policy. B. less control over fiscal policy. C. less control over monetary policy. D. more control over monetary policy.