If the Fed raises the discount rate, it:
a. forces commercial banks to call in existing loans.
b. changes excess reserves into required reserves.
c. changes required reserves into excess reserves.
d. none of the above
d
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Resource use is allocatively efficient if the
A) total cost of what the resource produces is less than the total benefit of what is produced. B) total cost of what the resource produces is equal to the total benefit of what is produced. C) marginal benefit of what the resource produces has diminished to zero. D) marginal cost of what the resource produces is equal to the marginal benefit of what is produced.
In the case of a negative externality,
A. marginal external costs are greater than marginal private costs. B. marginal external costs are less than marginal private costs. C. marginal external benefits are greater than marginal private benefits. D. marginal external benefits are equal to marginal private costs. E. none of the above