Everything else held constant, a decrease in the required reserve ratio on checkable deposits will mean

Since 2008, the Fed has conducted a policy that involves direct lending to private firms. Those actions of the Fed are called

A) open market operations. B) quantitative easing. C) federal funds rate targeting. D) credit policies.

The demand for bus service is perfectly elastic at a price of $1.25 a ride. The table above shows the bus company's marginal cost and the marginal social cost of the bus service

If the government levies a tax on bus rides so that the bus company takes into account the marginal social cost, the tax will be ________ a ride. A) $0.75 B) $1.60 C) $1.25 D) $3.25