Holding other factors constant, a decline in incomes of Europeans will result in a ________ curve in the United States, reducing real GDP relative to potential GDP

Which of the following would be an example of a nongovernmental solution to a problem associated with externalities?

a. society's preference to drive large cars and SUVs b. new stricter anti-litter laws c. a general moral commitment against using sprinklers during a drought d. tax credits for the purchase of hybrid autos

The interest rate that the Fed pays on reserves acts as a ceiling on the federal funds rate

Indicate whether the statement is true or false