Everything else held constant, the vertical section of the supply curve of reserves is shortened when the
A) discount rate increases.
B) discount rate decreases.
C) federal funds rate rises.
D) federal funds rate falls.
B
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Suppose the Environmental Protection Administration (EPA) proposes a change in automobile exhaust systems that reduces the amount of greenhouse gases (GHGs) emitted into the atmosphere, and they estimate that the net present value (NPV) of this
policy change is worth $3 trillion dollars. To form this estimate, the EPA staff members assumed a particular social discount rate and a particular stock dissipation rate for GHGs. What happens to the NPV of this proposed policy if the staff members use a smaller stock dissipation rate? A) NPV increases B) NPV declines C) NPV remains unchanged D) We do not have enough information to answer this question
Suppose that a price ceiling is imposed because the market equilibrium is perceived to be too high. Which of the following rationing schemes makes no sense?
a. rationing fish to those willing to pay the highest price b. rationing fish by means of a lottery c. rationing fish to the elderly first d. rationing fish on a first-come, first-served basis e. rationing fish according to family size
What was the balance of trade in 2017?
a. -$808 billion
b. -$552 billion
c. -$449 billion
d. $0 billion
With a given supply curve, a decrease in demand leads to
A. a decrease in equilibrium price and a decrease in equilibrium quantity. B. an increase in equilibrium price and a decrease in equilibrium quantity. C. no change in price and a decrease in equilibrium quantity. D. a decrease in equilibrium price and an increase in equilibrium quantity.