A negative externality
a. is an adverse impact on a bystander.
b. causes the product in a market to be under-produced.
c. is an adverse impact on market participants.
d. is present in markets where the good or service does not have any impact on bystanders.
a
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During the Great Depression, real interest rates
A) rose to unprecedentedly high levels. B) rose only slightly above the long-run trend. C) fell to unprecedentedly low levels. D) fell only slightly below the long-run trend.
If a bank receiving a new deposit of $200,000 would be able, as a result, to increase their lending by at most $120,000, then the required reserve ratio equals: a. 4%
b. 25%. c. 40%. d. 50%.
In the Keynesian range, the:
a. Aggregate demand curve is horizontal. b. Aggregate supply curve is horizontal. c. Aggregate demand curve is vertical. d. Aggregate supply is upward-sloping. e. Aggregate supply curve is vertical.
According to the classical economists, an increase in unemployment
A. could not occur. B. would be made worse by a decrease in interest rates. C. would be reduced by an increase in interest rates, wages, and prices. D. would be reduced by a decrease in interest rates, wages, and prices.