If a positive externality exists, __________ in order for the socially optimal output to be reached.

A. supply needs to decrease
B. demand needs to increase
C. demand needs to decrease
D. a and c
E. none of the above


Answer: B

Economics

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The money multiplier is equal to:

A. the government spending multiplier. B. the marginal propensity to consume. C. the reserve ratio. D. 1/(reserve ratio).

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The short-run market supply curve shows the relationship between the market price and the quantity supplied in the short run.

Answer the following statement true (T) or false (F)

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