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Author Question: What is the optimal level of provision of a public good? What will be an ideal ... (Read 106 times)

Hungry!

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on: Jun 29, 2018
What is the optimal level of provision of a public good?
 
  What will be an ideal response?

Question 2

A decrease in the discount rate ________ bank reserves and ________ the money supply if banks respond appropriately to the change in the rate.
 
  A) increases; decreases B) decreases; decreases
  C) increases; increases D) decreases; increases


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aliotak

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Reply #1 on: Jun 29, 2018
Answer to Question 1

The level at which society's total willingness to pay per unit is equal to the marginal cost of producing the good.

Answer to Question 2

C


Hungry!

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Reply #2 on: Jun 29, 2018
Thank you :)


aliotak

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Reply #3 on: Jun 29, 2018
Happy to help you


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