Reducing pollution to zero emissions would be socially efficient. ...

[Chloeellawright]

Reducing pollution to zero emissions would be socially efficient.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Suppose the required reserve ratio is 0.2 and the Fed buys 100,000 in government securities from Big Bank. The commercial banking system creates _____ as a result of this initial injection by the Fed.
 a. 1,000,000
  b. 500,000
 c. 100,000
 d. 80,000
 e. 200,000

[KKcool]

Answer to Question 1

False

Answer to Question 2

b

[Chloeellawright]

Excellent

[sultansheikh]

Gracias!