A rain barrel is a container that captures and stores rainwater for landscape and garden use during dry periods. As a result, rain barrels benefit the community through water conservation. If homeowners do not consider this external benefit of rain barrels, then
a. the socially optimal quantity of rain barrels will be larger than the equilibrium quantity of rain barrels.
b. the socially optimal
quantity of rain barrels will be smaller than the equilibrium quantity of rain barrels.
c. the socially optimal price of rain barrels will be lower than the equilibrium price of rain barrels.
d. the market for rain barrels would benefit from a tax on rain barrels.
a
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If people expect relative PPP to hold
A) the difference between the interest rates offered by dollar and euro deposits will equal the difference between the inflation rates expected, in the United States and Europe, respectively, over the relevant horizon. B) the difference between the interest rates offered by dollar and euro deposits will equal the difference between the inflation rates expected in Europe and the United States, respectively. C) the difference between the interest rates offered by dollar and euro deposits will equal the difference between the inflation rates expected, over the relevant horizon, in the United States and Europe, respectively, in the short run. D) the difference between the interest rates offered by dollar and euro deposits will be above the difference between the inflation rates expected, over the relevant horizon, in the United States and Europe, respectively. E) the difference between the interest rates offered by dollar and euro deposits will be below the difference between the inflation rates expected, over the relevant horizon, in the United States and Europe, respectively.
When banks borrow money from the Federal Reserve, these funds are called
A) federal funds. B) discount loans. C) federal loans. D) Treasury funds.
Amber has opened a coffee shop for many years on a piece of land that she has also owned. She has also made accounting profits from the coffee shop
This year, rents in the area rose considerably, and Amber responded by deciding to sell the land and the coffee shop to an apartment builder. How can you explain Amber's decision to sell her business?
The amount of currency in the economy is determined ultimately by the demands of the
a. commercial banks and the public b. Board of Governors c. District Federal Reserve Banks d. District Federal Reserve Banks and commercial banks e. Board of Governors and the District Federal Reserve Banks