When the Federal Reserve lends reserves to depository institutions, it charges them interest. That interest rate is called the

An economy has no imports or income taxes. The MPC is 0.75 and real GDP is $120 billion. Businesses increase investment by $4 billion. The multiplier is ________ and the change in real GDP from the increase in investment is ________ billion

A) 5; $16 B) 4; $25 C) 0.75; $3 D) 5; $25 E) 4; $16

Outcomes are fair according to the

A) rules view if private property rights are established and trade is voluntary. B) results view if private property rights are established and trade is voluntary. C) rules view if there is not too much inequality. D) results view if there is not a big tradeoff. E) results view if there is equality of opportunity.