The Fed can induce banks to increase their reserve holdings by:
A. Increasing the discount rate
B. Reducing the required reserve ratio
C. Increasing the interest on reserves
D. Selling securities in the open market
C. Increasing the interest on reserves
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Consider the following methods of pollution reduction:
a. the government sets a target for maximum emissions b. the government mandates the installation of specific pollution abatement equipment c. the government imposes a per unit tax on the good that creates pollution d. the government gives firms a tax rebate for every unit of pollution abated Which of the above is an example of a command-and-control approach to reducing pollution? A) a only B) b only C) a and b only D) a, b, and d only E) a, b, c, and d
Economic growth depends more on technological change than on increases on capital per hour worked
Indicate whether the statement is true or false