Suppose external benefits are present in a market which results in the actual market price of $49 and market output of 800 units. How does this outcome compare to the efficient, ideal equilibrium?
a. The efficient price would be higher than $49.
b. The efficient price would be lower than $49.
c. The efficient price would also be $49.
d. The efficient output would be less than 800 units.
A
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The Fed engages in open market operations and sells government securities. The result is..
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If the APS rises by .02, how much does total saving rise?
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