In the above figure, if output is 10 units, then the total deadweight loss is
A) $5.
B) $10.
C) $20.
D) $60.
B
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There are no quasilinear tastes that have constant elasticity of substitution.
Answer the following statement true (T) or false (F)
The key objective of purchases by the Federal Reserve of over $1 trillion worth of debt issued by private firms was ________
A) to avoid the bankruptcy of the issuing firms B) to manage expectations C) to prevent such firms from being acquired by foreign companies D) to stimulate spending by firms and households
The proportion of deposits that banks are legally required to deposit with the central bank are called:
a. discount requirements b. deposit requirements c. reserve requirements d. monetary requirements
The long run significance of investment is due to
a) its volatility b) the importance of capital to economic growth c) the effect of income on investment d) the procyclical nature of investment e) its ability to crowd-out government expenditures