Which of the following would not be a negative production externality associated with tire production?
a. smoke from the tire factory worsens the city's air quality
b. toxins from the tire-making process seep into the area's ground water
c. neighbors experience the bad smells that come from the tire factory
d. the rubber used to make tires could be used to make something else
e. all of these are negative production externalities
d. the rubber used to make tires could be used to make something else
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Suppose that a new customer opens a checking account and a saving account, placing $50,000 in each. Later, the bank makes a loan of $100,000 to a business firm. For this bank
A) assets increased by $100,000 because the loan is an asset, and liabilities increased by $100,000 because the checking and saving accounts are liabilities. B) assets increased by $100,000 because the checking and saving accounts are assets, and liabilities increased by $100,000 because the loan is a liability. C) assets increased by $50,000 because the saving account is an asset, while liabilities increased by $50,000 because the checking account is a liability. D) assets remained unchanged but liabilities increased by $100,000 because of the loan.
In the monetary small open-economy model with a fixed exchange rate, an increase in the foreign price level has which impact on domestic money demand?
A) It increases it. B) It decreases it. C) It has no impact. D) It depends.