The tool most frequently relied on by the Fed is
a. interest rate changes.
b. changing the money multiplier.
c. changing the discount rate.
d. open market operations.
e. changing the reserve ratio.
d
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Which of the following expenditure components of GDP can be negative or positive?
A) Consumption expenditure B) Investment C) Government expenditure on goods and services D) Net exports of goods and services E) None of the above because expenditure can never be negative.
Game theory shows that
A) sometimes pursuing profit maximization will not yield the highest joint profit. B) interdependencies between firms have to be taken into account when few firms dominate the market. C) in an oligopolistic market, firms are likely to collude. D) All of the above.
Which of the following statements explain positive economics? (Check all that apply.)
A. It is not factual B. The predictions are testable. C. It can be rejected or amended depending on the evidence available. D. It depends upon value judgements.
Explain why an external cost leads to an over-allocation of resources to the production of a good
What will be an ideal response?