Politicians and citizens may often choose policies that reduce economic efficiency because they are perceived as "fairer."

Would the maximum loan that a bank can make be different when receiving a discount loan from the Federal Reserve of $1 million versus receiving a checking account deposit of $1 million? Explain why or why not

What will be an ideal response?

An economy's production function is Y = A , and the economy's total output in equilibrium is $90 billion. Total capital income in this economy is ________

A) $27 billion B) $30 billion C) $21 billion D) $70 billion E) none of the above