A monetarist economist believes that if the economy was left alone, it would rarely operate at full employment

If the Fed wants to stimulate the economy, ________

A) it reduces money supply B) it lowers spending C) it increases tax rates D) it lowers short-run interest rates

If the marginal private cost of producing one kilowatt of power in California is ten cents and the marginal social cost of each kilowatt is fourteen cents, then the marginal external cost equals ________ per kilowatt

A) ten cents B) nineteen cents C) four cents D) zero cents E) fourteen cents