Which of these arises when an individual listens to loud music late in the night?
a. An externality
b. The free-rider problem
c. An asymmetric information problem
d. The common-pool problem
a
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What are the main rules of the Budget Enforcement Act of 1990?
What will be an ideal response?
The Phillips curve shows that when the unemployment rate is lower than the natural rate,
A) inflation is higher than expected. B) inflation is lower than expected. C) policy rate is higher than expected. D) policy rate is lower than expected.
Suppose a bank has $100,000 in checking account deposits with no excess reserves and the required reserve ratio is 5 percent. If the Federal Reserve lowers the required reserve ratio to 3 percent, then the bank will now have excess reserves of
A) $0. B) $2,000. C) $3,000. D) $5,000.
If banks cannot lend all of their excess reserves,
a. the potential money multiplier increases b. the actual money multiplier decreases c. the potential money multiplier decreases d. the amount of loans by the bank increases e. demand deposits decrease