The _____ lag is typically longer for fiscal policy than monetary policy

Refer to Figure 5-4. Why is there a deadweight loss?

A) because the marginal social cost of producing each additional unit in excess of Q2 exceeds the marginal benefit B) because the marginal social benefit of producing each additional unit in excess of Q2 exceeds the private cost C) because the marginal private cost of producing each additional unit in excess of Q2 exceeds the marginal benefit D) because the marginal private benefit of producing each additional unit in excess of Q2 exceeds the social cost

If a nation's real interest rate fell relative to foreign nations, it would cause net exports to:

a. Fall. b. Rise. c. Remain unchanged. d. It could increase or decrease net exports, depending on the elasticity of demand for foreign exchange.