When an economist considers welfare evaluations, he is looking at
A) whether a policy increases social welfare.
B) the ability of an economy to take care of the unemployed.
C) price inertia.
D) new open economy macroeconomics.
Question 2
A lender of the last resort refers to
A) a role of the central bank to prevent bank runs for temporary problems of liquidity.
B) a role for the government to ensure that the central bank has adequate reserves.
C) a reason for regulating banks.
D) the need for market based regulations in the banking industry.
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