If the demand for money is Md = 100 +.25Y – 100r and then the increase in money demand rises by 100, the LM curve shifts to the
a. right by 400.
b. right by 100.
c. left by 200.
d. left by 400.
e. none of the above.
D
Economics
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People will tend to "internalize externalities" when
A) responsibility for the consequences of actions is more clearly assigned to the actors. B) spillover costs and benefits become more common and widespread. C) they calculate more carefully the marginal costs and marginal benefits of their decisions. D) they feel less empathy for others.
Economics
One suggested method of dealing with the too-big-to-fail problem is to reimpose the restrictions that were in place under
A) Glass-Steagall. B) McFadden. C) the Edge Act. D) the Federal Reserve Act.
Economics