Externalities are benefits or damages conferred upon people who are directly involved in an exchange of a good or service.

In the short run, how does the Fed change the nominal interest rate?

What will be an ideal response?

If there is no Ricardo-Barro effect, a government budget surplus ________ the supply of loanable funds and ________ equilibrium investment

A) decreases; increases B) increases; increases C) increases; decreases D) does not change; does not change E) decreases; decreases