In the real world, we should expect the multiplier process to work itself out
A) almost instantaneously.
B) within a few days.
C) within about one month.
D) over many months, perhaps even years.
D
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A rightward shift in the supply curve of reserves held at the Fed ________
A) reduces the federal funds interest rate B) increases unemployment C) reduces the price level D) increases the tax rates
The above figure shows the marginal private benefit and marginal social cost of a college education. If society's external benefits from college graduates is $10,000 each, then the
A) marginal social cost curve lies $10,000 to the left of the private marginal benefit curve. B) marginal social cost curve lies $10,000 to the right of the private marginal benefit curve. C) marginal social benefit curve lies $10,000 below the private marginal benefit curve. D) marginal social benefit curve lies $10,000 above the private marginal benefit curve.
You borrow $10,000 from a bank for one year at a nominal interest rate of 5%. The CPI over that year rises from 180 to 200. What is the real interest rate you are paying?
A) 15% B) 5% C) -1.1% D) -6.1%
Which of the following is an example of an activity that creates a positive externality?
a. an iron smelting factory emits sulfur dioxide into the air b. the owner of a steamboat company dredges a river in order to improve navigation c. a group of investors starts a business specializing in transporting goods via clipper ship d. flatboat operators purchase steamboat tickets in order to return to their homes upstream