Quantitative easing is a central bank policy that attempts to stimulate the economy by possibly
A) selling treasury securities.
B) making discount loans to nonfinancial corporations.
C) slowly reducing the required reserve ratio.
D) buying long-term securities.
D
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The table above shows the marginal benefit that arises from providing police protection in an economy of two people, Paul and Art. Police protection is a public good
a) Construct a table of the economy's marginal social benefit from providing police protection. b) What is the economy's marginal social benefit from having 3 police cars on duty?
In the Keynesian model,
a. the autonomous expenditure multiplier is lower than the tax multiplier. b. the autonomous tax multiplier is positive and large. c. the autonomous tax multiplier is larger (in absolute value) than the tax multiplier. d. the tax multiplier is equal to 1. e. none of the above.