Which of the following is not an obstacle to achieving environmental efficiency through markets?

If the government increases spending without a tax increase and simultaneously no monetary policy changes are made, which of the following will most likely occur?

a) income would not rise at all because no new money in available for increased consumer spending b) the rise in income may be greater than the multiplier would predict because the higher interest rates will stimulate investment spending c) the rise in income may be smaller than the multiplier would predict because the higher interest rates will crowd-out private investment spending d) income will go up by exactly the amount of the new government spending since this acts as a direct injection to the income stream e) income will not go up unless taxes are cut as well

When stock prices become more volatile, the ________ curve for gold shifts right and gold prices ________, everything else held constant

A) demand; increase B) demand; decrease C) supply; increase D) supply; decrease