If the Fed wants to shift toward a more expansionary policy, it often announces that it is going to change the federal funds interest rate. The Fed controls the federal funds interest rate
a. by imposing legal restrictions that prohibit exchanges at interest rates other than the ones designated by the Fed.
b. by having the U.S. Treasury fix this interest rate
c. through its policy of open market operations.
d. by altering the size of the federal budget deficit or surplus.
C
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Which of the following is true of a public good?
a. It is nonexcludable and nonrival in consumption. b. The private market will produce more than the efficient amount. c. It must be provided by the government.
Clipper ships
a. allowed for profitable shipping on both short and long journeys. b. dominated Atlantic trade by 1850. c. were among the first ships to have iron hulls. d. earned huge profits transporting passengers and cargo during the gold rushes to California and Australia. e. All of the above.