Savings deposits are included in

A firm has the choice of offering "dirty" jobs that are likely to cause severe health problems for its workers or of offering "clean" jobs by installing safety equipment at a cost of $5 per hour per employee that will substantially reduce the chances of health problems. The firm will

A. install the safety equipment if workers can ascertain whether they are working a dirty or a clean job. B. never willingly choose to install the costly safety equipment. C. willingly install the safety equipment if workers are willing to be paid $7 per hour less in a clean job than in a dirty job. D. install the safety equipment if workers are willing to be paid $3 per hour less in a clean job than in a dirty job. E. never install the safety equipment without a government subsidy to do so.

Reducing the fed funds rate can increase GDP in the short term because at lower interest rates

A. households will attempt to save more. B. taxes are lower, which increases disposable income. C. Individuals and businesses will want to borrow and spend more. D. banks will earn greater profits on loans.