In the presence of a positive externality, public policy aims to increase quantity beyond the private optimum

Indicate whether the statement is true or false

true

Economics

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If interest rates fall, the M2 money multiplier:

a. Does not change. b. Rises because C/D and U/D rise, and N/D falls. c. Falls because C/D and U/D fall, and N/D falls. d. Falls because C/D, U/D, and N/D rise. e. Falls because C/D and U/D rise, and N/D falls.

Economics

Betty is maximizing her satisfaction from spending her budget on two items, movie rentals and music downloads. If her marginal utility from the last movie rental is twice that from the last music download, what is the price of a movie rental if the price of a music download is $.80?

A. $0.40 B. $0.80 C. $1.20 D. $1.60

Economics