Everything else held constant, in the market for reserves, when the federal funds rate is 1%, increasing the interest rate paid on excess reserves from 1% to 2%
A) lowers the federal funds rate.
B) raises the federal funds rate.
C) has no effect on the federal funds rate.
D) has an indeterminate effect on the federal funds rate.
B
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A positive externality ________
A) gives rise to external benefits B) leads to increasing returns to scale C) imposes an additional cost on the society D) leads to higher economic profit
Countries that are more globalized tend to have
A) a higher likelihood of war or revolution. B) lower levels of foreign direct investment. C) lower levels of real GDP per capita. D) higher growth rates in real GDP per capita.
If the CPI in 2004 is 200, and in 2005 the CPI is 180, the rate of inflation from 2004 to 2005 is
A) 20%. B) 10%. C) 0%. D) -10%.
A cost imposed on someone who is neither the consumer nor the producer is called a
a. corrective tax. b. command and control policy. c. positive externality. d. negative externality.