When the economy is in a liquidity trap, which of the following is not correct?
A) A reduction in the interest rate can be used to increase output.
B) Fiscal policy is more important.
C) Interest rate is zero.
D) Large increases in spending and cuts in taxes were not enough to avoid the recession.
A
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The figure above illustrates the marginal private cost and the marginal social cost to the city of Seattle for each rock concert that is offered. Suppose the marginal private cost of the 5th concert is $10,000. Then, for the 5th concert, the
A) marginal external cost equals $30,000. B) marginal social cost equals $30,000. C) marginal external cost equals the marginal private cost. D) marginal external cost equals $40,000. E) marginal external cost equals $10,000.
Less than half of female-headed poor families are active in the labor market
Indicate whether the statement is true or false