When a policy succeeds in giving buyers and sellers in a market an incentive to take into account the external effects of their actions, the policy is said to
a. equalize private value and private cost.
b. equalize private cost and external cost.
c. externalize the actions of the buyers and sellers.
d. internalize the externality.
d
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A commercial bank's last resort for borrowing reserves is from the:
A) discount window. B) central government. C) federal funds market. D) foreign banks.
According to the search model, Consumer Reports magazine benefits consumers by increasing the marginal benefit of information
a. True b. False
In the 1970s, _____
a. the market interest rate increased above the rate that banks could offer b. banks and thrifts were able to borrow at low interest rates to support outstanding loans c. the market interest rate decreased below the rate that banks could offer d. banks and thrifts were forced to call in outstanding loans e. banks and thrifts were bailed out by the FDIC
As price declines, quantity supplied
A. rises. B. falls. C. remains the same.