In the case of a positive externality, in order to achieve efficiency the government must set the _________________ equal to the marginal ____________________

Other things the same, an increase in the foreign price level leads to an increase in the real exchange rate

a. True b. False Indicate whether the statement is true or false

The cyclically-adjusted budget deficit in an economy is zero. If this economy goes into recession, then the actual government budget will be:

A. Balanced B. In deficit C. In surplus D. Expanding