If the magnitude of the external costs in an industry increased ...

[DelorasTo]

If the magnitude of the external costs in an industry increased
 a. The supply curve including external costs would increase
  b. The efficient price would increase
 c. The market price would increase
 d. Both a and b are true

Question 2

If the public has correct rational expectations and the Fed reduces the level of banking reserves, it would be expected to result in:
 a. a higher level of real output and a lower price level.
  b. a lower price level but no change in real output.
 c. a higher price level and a reduced level of real output.
  d. a higher price level but no change in real output.

[dmurph1496]

Answer to Question 1

b

Answer to Question 2

b

[DelorasTo]

Correct answers!

[dmurph1496]

Great! Please up vote