There is an externality present only when
A) private costs equal social benefits.
B) private benefits equal social benefits.
C) private costs or benefits diverge from social costs or benefits.
D) private costs equal social costs.
C
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Which of the following is a central bank asset?
A) domestic securities and bills B) currency notes C) bank reserve deposits D) government deposits
The primary reason why the Fed cannot systematically surprise the public with its monetary policy is
A) the nonneutrality of money. B) the presence of productivity shocks that generate real business cycles independent of the monetary side of the economy. C) the presence of rational expectations among the public. D) the presence of propagation mechanisms within the economy.
What is economic value of an exchange?
Which phase of the business cycle would be most closely associated with an economic contraction?
A. Peak B. Recession C. Trough D. Recovery