Knowledge capital is ________ in production and ________. As a result, firms ________ free ride.
A) nonrival; nonexcludable; cannot B) nonrival; excludable; can
C) nonrival; nonexcludable; can D) rival; nonexcludable; cannot
Question 2
Refer to Figure 17-1. Suppose that the economy is currently at point A, and the unemployment rate at A is the natural rate. What policy would the Federal Reserve pursue if it wanted the economy to move to point C in the long run?
A) Increase the money supply.
B) Buy treasury bills.
C) Lower the discount rate.
D) Sell treasury bills.
E) No policy will move the economy to point C in the long run.
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