In which of the following situations should a firm increase its efforts to abate pollution?
A. The marginal benefit of abatement is less than its marginal cost.
B. The marginal benefit of abatement is greater than its marginal cost.
C. The marginal benefit of abatement is equal to its marginal cost.
D. None of these
Answer: B
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A television report states: "The Federal Reserve will lower the discount rate for the fourth time this year." This report indicates that the Federal Reserve is most likely trying to ________.
A. save the banking industry B. improve the savings rate C. stimulate the economy D. reduce inflation
Briefly describe how the Bretton Woods system operated
What will be an ideal response?
Describe the type of international monetary system that is currently in use. What advantages do proponents of this type of system cite in support of its use? What disadvantages do its opponents cite?
The equation of exchange
A. is an identity. B. requires that an increase in nominal GDP must always be accompanied by an increase in the velocity of money. C. does not apply when the level of unemployment is quite high. D. holds only if the velocity of circulation of money is a constant.