Everything else held constant, in the market for reserves, decreases in the interest rate paid on excess reserves affect the federal funds rate
A) when the funds rate is below the interest rate paid on excess reserves.
B) when the funds rate equals the interest rate paid on excess reserves.
C) when the funds rate is below the discount rate.
D) when the funds rate equals the discount rate.
B
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If coal-burning electrical utility companies fully internalized pollution costs, then we could expect
A) an increase in electricity prices. B) a decrease in electricity prices. C) no change in electricity prices. D) a greater use of coal to produce electricity.
All of the following are problems associated with price ceilings except
a. chronic excess demand b. an eventual decline in the number of suppliers c. the need to use ration coupons to purchase the good d. chronic excess supply e. landlords failing to maintain rent-controlled properties adequately