If left to market forces, activities that produce external benefits wil be over-produced

Banks in the U.S

A) are prevented from holding assets that are "too risky." B) are not prevented from holding assets that are "too risky." C) are encouraged not to hold assets that are "too risky." D) are not encouraged not to hold assets that are "too risky." E) are encouraged to lend to a single private customer.

A contractionary monetary policy shifts the LM curve to the ________, reducing ________, everything else held constant

A) left; output and increasing interest rates B) left; both real output and interest rates C) right; both interest rates and real output D) right; interest rates and increasing real output