Which of the following actions of the Fed would increase the money supply?
a. The purchase of U.S. government securities.
b. A reduction in the discount rate.
c. A reduction in the required reserve ratio.
d. All of the above are correct.
D
Economics
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Three possibilities are equally likely and have payoffs of $3, $6, and $9 . The expected value is:
a. $4 b. $5 c. $6 d. $7
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An externality exists when
A) goods are sold in specific geographic locations. B) some of the benefits or costs associated with a good are borne by third parties. C) the government taxes a good. D) the government subsidizes a good.
Economics