In order to increase society's total welfarer, a production process that produces a negative externality should be
a. taxed
b. provided by the government
c. ignored
d. subsidized
e. exported
A
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In the long run, the representative firm in monopolistic competition tends to have
A. economic profits B. no product differentiation. C. a perfectly elastic demand curve. D. excess capacity.
What are the three functions of money?
When the Federal Reserve began paying interest on excess reserves, the effect on monetary policy was
A. making open market operations less effective. B. adding a new tool to monetary policy. C. reducing the effect of a change in reserve requirements. D. eliminated the need for the Federal Funds Market.
In the chain of cause and effect involving monetary policy:
a. A decrease in the rate of interest will decrease aggregate demand b. An increase in the money supply will decrease the rate of interest c. A decrease in excess reserves will increase the money supply d. A decrease in aggregate demand will increase output