A farmer that is holding corn is short in the cash market.

If electric utilities continually reduce their emissions of sulfur dioxide

A) the utilities will eventually be forced to go out of business. B) the marginal cost of further emissions will rise. C) the marginal benefit of additional emissions will rise. D) the total benefit of sulfur dioxide emissions will fall.

An increase in government expenditures by $100 (unmatched by an increase in taxes) would, if the MPC = 0.90, result in an increase in real GDP by:

a. $1,000. b. $9,000. c. $900. d. $190. e. inadequate information is given.