To try and stave off a devaluation of its fixed currency, Argentina was required to

A gold standard pegs the currency to:

A) another nation that also adopts a gold standard. B) a basket of metals: gold, silver, platinum, and palladium. C) the price of gold in local currency. D) the U.S. dollar.

Economist A.C. Pigou argued that to deal with a negative externality in production, the government should impose a tax equal to the cost of the externality. What did Pigou believe should be done in the case of a positive externality in consumption? How

would his recommendation impact the demand and market equilibrium for the product which is generating the positive externality? What will be an ideal response?