The European Central Bank's Marginal Lending Facility is used to provide:
A. short-term loans at rates above the target refinancing rate.
B. long-term loans to banks at rates below the target refinancing rate.
C. long-term loans to banks at rates above the target refinancing rate.
D. short-term loans to banks at rates below the target refinancing rate.
Answer: A
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Under the rational expectations hypothesis, which of the following is the most likely effect of a shift to a more expansionary monetary policy?
a. In the short run, the real rate of output will be unaffected, but in the long run, it will increase. b. In the short run, the real rate of output will increase, but in the long run, it will be unchanged. c. There will be a permanent increase in the real rate of output, but the inflation rate will also be a little higher. d. In the short run, the impact on the real rate of output is uncertain; in the long run, it will remain unchanged.
As the market price of a service increases, more potential sellers will decide to perform that service because:
A. it's more prestigious to produce high-priced services. B. more potential sellers will find that the market price exceeds their reservation price. C. higher prices result in higher revenue. D. higher prices lead to lower opportunity costs.
Recessions in Canada and Mexico would cause
a. the U.S. price level and real GDP to rise.
b. the U.S. price level and real GDP to fall.
c. the U.S. price level to rise and real GDP to fall.
d. the U.S. price level to fall and real GDP to rise.
The table above provides information about the marginal private benefit for education
The marginal private cost, which also equals the marginal social cost, of educating a student is $16,000 per year and does not change as more students are educated. There is an external benefit from education that is equal to $12,000 per student year and does not change as more students are educated. What is the efficient amount of education? A) 40,000 student-years B) 60,000 student-years C) 80,000 student-years D) 100,000 student-years