If there is an external cost from making paper, an unregulated competitive market produces
A) less than the efficient quantity.
B) the efficient quantity.
C) more than the efficient quantity.
D) a quantity that could be greater than, the same as, or less than the efficient amount.
C
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Quantitative easing is likely to lead to a(n) ________
A) increase in unemployment rate B) decrease in the price level C) increase in the federal funds rate D) decrease in the federal funds rate
The relationship between the nominal interest rate, the real interest rate, and the inflation rate is that the
A) real interest rate is equal to the nominal interest rate plus the inflation rate. B) nominal interest rate is equal to the real interest rate plus the inflation rate. C) real interest rate is equal to the nominal interest rate multiplied by the inflation rate. D) nominal interest rate is equal to the real interest rate minus the inflation rate. E) nominal interest rate is equal to the real interest rate divided by the inflation rate.