Explain why the social demand curve for a public good is the vertical sum of the demand curves of each individual
What will be an ideal response?
A public good lacks rivalry, so many people can get pleasure from the same unit of output. Thus for each unit of public good, the total willingness to pay is the sum of everyone's willingness to pay because everyone can consume the good.
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Suppose an economy's money supply is fixed at $4,000 and its nominal GDP is $800,000. Calculate the velocity of money
What will be an ideal response?
A decrease in the interest rate will cause the intertemporal budget constraint to _______________ through the endowment point.
A. pivot clockwise B. pivot counter-clockwise C. shift clockwise D. shift counter-clockwise
An essential function of a central bank is to:
A. manage the money supply. B. collect taxes. C. issue debt. D. control and monitor government budgets.
When the dollar depreciates, U.S
a. exports and imports increase. b. exports increase, while imports decrease. c. exports decrease, while imports increase. d. exports and imports decrease.