If a bank uses $500 of excess reserves to make a new loan when the reserve ratio is 8 percent, this action by itself initially makes the money supply
a. and wealth increase by $500.
b. and wealth decrease by $500.
c. increase by $500 while wealth does not change.
d. decrease by $500 while wealth decreases by $500.
c
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Under an emission tax, polluters ________ what price they have to pay to pollute, __________________________ how much pollution will be generated.
A. know; and government knows B. don't know; and government doesn't know C. know; but government doesn't know D. don't know; but government knows
If a country fixes its exchange rate below the equilibrium value,
a. the result is an excess supply of that currency b. there will be downward pressure on the exchange rate c. its GDP will increase d. its GDP will decrease e. it will have to sell its own currency in order to eliminate the excess demand
A legal entity that may conduct business in its own name just as an individual does is a(n)
A. proprietorship. B. corporation. C. partnership. D. entrepreneur.
If pollution is bad, why do we still use pollution-causing resources such as coal and oil to generate electricity?
A) Governments lack the political will to enforce the use of pollution free resources. B) The cost of using pollution free resources to generate power in many circumstances is much higher than generating that same power through conventional pollution-causing means. C) Pollution is only a private cost. D) The transaction costs of pollution is too low.