A decrease in the real risk-free interest rate causes the:
a. Preferred asset ratio for currency in circulation (C/D) to rise, which increases the quantity of real loanable funds supplied.
b. Preferred asset ratio for customary reserves (U/D) to rise, which increases the quantity of real loanable funds supplied.
c. Preferred asset ratio for near money (N/D) to fall, which decreases the quantity of real loanable funds supplied.
e. None of the above.
.C
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When deciding to implement a congestion tax, economists and the government would use the elements of the economic way of thinking to primarily determine
A) what tax amount should be charged. B) who should be exempt from the tax. C) if the tax would be allocated equitably. D) how much revenue will the tax generate.
Growth accounting is a method which measures the contributions to economic growth from what three factors?
What will be an ideal response?
The above figure shows the demand and supply curves in the market for milk. Currently the market is in equilibrium. If the government imposes a $2 per gallon tax to be collected from sellers, estimate the change in p, Q, and social welfare
What will be an ideal response?
The theory of factor pricing uses supply-demand analysis
a. True b. False Indicate whether the statement is true or false