In the economic way of thinking, what do entrepreneur s and bureaucrats have in common?
A) They each advance projects solely in the public interest.
B) They each advance projects only if the expected marginal benefits exceed the expected marginal costs.
C) They each advance projects only if the expected marginal benefits are less than the expected marginal costs.
D) They each advance projects only if they impose no negative externalities.
Question 2
Which activity of the Fed would tend to increase excess reserves throughout the banking system?
A) Purchases of government bonds on a mass scale
B) An increase in the required reserve ratio
C) An increase of the discount rate
D) Sales of government bonds on a mass scale
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economic question