Under a k-percent rule, if the economy goes into expansion, the Fed would
A) increase the quantity of money.
B) raise the federal funds rate.
C) lower tax rates to keep revenue constant.
D) lower the federal funds rate.
E) None of the above answers is correct.
E
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The World Bank
A) extends long-term loans for capital investment projects to developing nations. B) mediates contracts regarding minimum prices for various globally-traded commodities. C) determines the labor force participation rate in each of its member nations. D) determines the price level in each of its member nations.
The marginal social cost of producing a good or service is the
A) cost of producing an additional unit borne by the producer. B) cost of producing an additional unit borne by people other than the producer. C) sum of the marginal private cost and the marginal external cost. D) same as marginal external cost. E) sum of the marginal private cost and the marginal external cost minus the marginal social benefit.